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Carbon Emissions: Local Authorities

Volume 480: debated on Friday 17 October 2008

To ask the Secretary of State for Energy and Climate Change on what basis the initial allocation to local authorities will be made under the carbon reduction commitment; and what mechanisms will be put in place to reward local authorities which had reduced their energy consumption prior to the introduction of the scheme. (225210)

[holding answer 8 October 2008]: The Government will not set allocations for individual organisations participating in the carbon reduction commitment. Instead the Government will set a cap for the total number of allowances available for all participants. Organisations will be required to surrender sufficient allowances to cover their annual emissions and may purchase these through an annual sale or auction, or on the secondary market. Organisations will therefore decide on the basis of their emissions reduction strategy how many allowances they need to buy. There will be a three year introductory phase where participants will be able to purchase unrestricted quantities of allowances at a set price. After the introductory phase a cap will be set on the number of allowances available and the market will determine the price of allowances. The sale or auction revenues will be recycled to organisations according to their position in the carbon reduction commitment league table.

Early action to reduce their energy consumption will be recognised in determining an organisation's position in league table. The two actions that are recognised by the league table are the voluntary installation of automatic metering and accreditation with the Carbon Trust Standard.