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Carbon Emissions: EU Action

Volume 486: debated on Monday 12 January 2009

To ask the Secretary of State for Energy and Climate Change pursuant to the Prime Minister's Statement on the EU Council Afghanistan, India and Pakistan of 15 December 2008, Official Report, columns 814-17, what the financial mechanism is to make available funds for the commercial demonstration of carbon capture and storage (CCS) technology; how much of the nine billion euro of such funding will be contributed by the United Kingdom; and when he expects the first CCS demonstration project to be commissioned. (245507)

On 17 December 2008 the European Parliament passed the directive governing phase III of the EU Emissions Trading Scheme (ETS), which will make available until 31 December 2015 up to 300 million free allowances from the new entrants' reserve for the construction and operation of up to 12 demonstration projects of carbon capture and storage (CCS) and innovative renewable energy projects. This does not require member states to make individual contributions, although any one project may claim only a maximum of 15 per cent. of the total number of allowances and projects must be co-financed by the operator. The total amount of funding that will be made available for CCS depends on the carbon price and the number of CCS projects that are put forward by the member states. The criteria for allocating allowances to projects will be determined over the next few months, but the aim of the mechanism is to stimulate investments in projects which will be operational by 2015.

To ask the Secretary of State for Energy and Climate Change pursuant to the written ministerial statement of 15 December 2008, Official Report, column 76WS, on the EU Energy Council, if he will (a) place in the Library and (b) post on his departmental website copies of the documents presented to the meeting by the Presidency and European Commission respectively; and if he will make a statement on the Government's responses to the proposals. (245607)

The documents relating to the Energy and Climate Change package, the Second Strategic European Energy Review and energy efficiency were all placed in the Library when they were first published, with Explanatory Memoranda, which set out the UK's initial position.

The documents relating to the issues discussed at the Energy Council can all be found on the European Commission's website through links on the European energy pages of the Department of Energy and Climate Change's website.