News | Climate Change

http://www.bloomberg.com/news/2011-02-10/u-k-sales-of-carbon-permits-about-to-breach-1-billion-euros-in-revenue.html

The U.K. is set to break 1 billion euros ($1.4 billion) in proceeds from carbon auctions, and the money should go to help the climate and poor people, according to Carbon Retirement Ltd.

Britain has collected about 962 million euros since it started auctioning European Union carbon allowances in November 2008. It is forecast to exceed 1 billion euros after selling 4.4 million metric tons of allowances in an auction today, Jane Burston, founder and director of Carbon Retirement, said in an interview. The group, representing companies and non-profits wanting to offset their carbon emissions, buys CO2 permits and takes them out of circulation.
The U.K. should spend its carbon proceeds on cushioning the impact of higher power costs on poor people, Burston said. The EU carbon market, the world’s biggest, drives up electricity prices by adding to the cost of generation. Britain should also earmark funds to help meet its target for cutting greenhouse gas and assist poor nations coping with climate change, she said.
“The percentage of people in fuel poverty has increased,” Burston said.
Germany, which has raised 2 billion euros from selling EU allowances, earmarks some of its revenue for domestic and international climate protection projects, Burston said. The EU, which has given away most permits since starting its carbon program in 2005, plans to sell more allowances starting in 2013. U.K. revenue from such sales is forecast to reach about 64 billion euros by 2020, she said.
Today’s sale offers traders the chance to buy carbon permits at a time of uncertainty. Spot markets for allowances have been hampered since Jan. 19, when the EU suspended the registries that track ownership of carbon rights in the wake of thefts estimated at $40 million.
Britain’s carbon registry was among five of 30 such centers in Europe that were allowed to reopen after showing they have adequate security, clearing the way for today’s auction.
EU permits were unchanged yesterday at 14.30 euros a ton on the BlueNext exchange in Paris.