The European Union plans to introduce a trading scheme for carbon dioxide emissions
starting 2005, many European Union ( eu ) industries would be under an obligation to buy and sell the right to emit carbon dioxide ( co 2 ) under an 'emission trading' scheme. Emission trading is one of the main 'flexible mechanisms' under the Kyoto Protocol that is being used by many countries to meet their emission targets. A draft eu law will make it compulsory for oil refiners, electricity generators and processors or makers of cement, glass, ceramic, pulp and paper to take part in the scheme. Combustion plants of less that 20 megawatts, chemical industry, waste incineration plants and transport sector have been exempted from this scheme.
Under the provisions, eu governments will grant industries the right to emit a certain annual amount of co 2 . If a plant emits less than the amount permitted, it can sell the surplus. If it surpasses its limit then it will be penalised. If any firm fails to reduce its emissions or is unable to buy credits, it would be liable to pay us $170.8 for every excess tonne of co 2 emitted. The commission says that the scheme will indirectly help in combating global warming by encouraging industries to find ways to reduce their emissions.
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