EU Rejects UK Plan To Raise Carbon Emissions Through Trading Plan

[hatrack]

BRUSSELS / LONDON - Britain cannot raise the amount of pollution industry can emit under the European Union's trading scheme, the EU executive said on Wednesday, despite a court ruling allowing Britain to alter its first emissions plan.

Britain had sought to change its original allocation of pollution rights to allow industry to pump out an additional 20 million tonnes of carbon dioxide (CO2), the main gas blamed for global warming, in the 2005-2007 period. The EU emissions trading scheme is its key instrument to fight climate change and meet commitments under the environmental treaty known as the Kyoto Protocol.

Britain's attempt to allow its industry to pollute more came at the same time as Prime Minister Tony Blair put the fight against climate change at the top of the agenda of Britain's presidency of the EU and G8 group of rich nations last year.

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Britain said it was studying a range of options in response, including further legal action. "We are looking at the ruling and considering what to do next, including the case for any legal challenge," a spokesman for Britain's Department for Environment Food and Rural Affairs said. "The legal possibilities exist for a challenge." The government accused the Commission of hiding "behind procedure" with its ruling.

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