asked Her Majesty's Government:
Further to the Written Answer by the Minister of State at the Department for Environment, Food and Rural Affairs, Phil Woolas, on 9 June (Official Report, Commons, cols. 17-18W), why the allocation of carbon dioxide emissions in European Union Emissions Trading Scheme installations in the cement and the food, drink and tobacco sectors rose by 60 per cent from 2006 to 2007 and that of the offshore sector by 52 per cent; and why actual emissions from those sectors rose by 57 per cent, 58 per cent and 45 per cent respectively. [HL5607]
For Phase 1 of the EU Emissions Trading Scheme (EU ETS), the European Commission approved two types of opt-outs for UK installations: one for installations with climate change agreements (CCAs) and the other for installations that were already in the UK Emissions Trading Scheme (UK ETS).
Within the UK, a total of 389 installations chose to opt out, 330 on the basis of their CCAs and 59 on the basis of their involvement in the UK ETS. The UK ETS opt-outs were required to enter the EU ETS on 1 January 2007, when the UK ETS ended. Seven of these were cement-sector installations, 34 offshore installations and six food-sector installations.
The allocated allowances and verified emissions of these UK ETS opt-outs account for the percentage differences from 2006 to 2007.
When comparing 2006 and 2007 EU ETS results a comparable increase in the number of installations did not occur. The reason for this is that the UK ETS installations were all given EU ETS national allocation plan IDs and assigned zero allocations and emissions in the EU ETS in 2006. In 2007 the allocated allowances and verified emissions increased while the number of installations in the sector stayed the same.