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Emissions Trading

Volume 686: debated on Tuesday 7 November 2006

asked Her Majesty's Government:

Further to the Written Answer by the Under-Secretary of State for Defence, Mr Tom Watson, on 10 July (HC Deb, 1430W), for the purpose of the European Union Emission Trading Scheme, on what basis the additional permit costs of establishments are calculated.[HL7713]

To address the shortfall in the initial allocation of free carbon emission permits against the actual carbon emissions between 1 January 2005 and 31 December 2005, additional permits were bought by the Ministry of Defence on the open market at the going rate of exchange.

The calculation of the additional costs depends on whether permits were bought on one or more than one dates, as exchange rates will vary. The required information is being checked by Defence Estates—the MoD agency responsible for these matters—and I will write to the noble Lord as soon as this exercise is complete.