(2) that more than 45 per cent. of emissions reductions under the Emissions Trading Scheme should be delivered through the Clean Development Mechanism or Joint Implementation.
The Government believe that there should be more access to project credits in the EU emissions trading scheme than is provided for in the Commission proposal for revising the scheme. This would allow for harmonisation of access among installations in the EU. The UK Government would like to see project credit access in both the EU emissions trading scheme and greenhouse gas (GHG) effort-share limited to 50 per cent. of absolute effort (in the context of the overarching principle that 50 per cent. of absolute emissions reductions from 2005 must take place within the EU).
We are still considering what this “50 per cent. of absolute effort” principle means in quantitative terms across the EU ETS and the non-traded sector. This is difficult because the EU ETS runs across the time period 2008 to 2020, while the non-traded sector runs across the period 2013 to 2020. We need to be sure that we get the balance right to demonstrate that Europe is serious about the transition to a low carbon economy through emission reductions within its borders. We should not rely disproportionately on third countries in order to meet Europe's own targets.