EC’s Emissions Targets May Increase Power Prices By 15pc

The European Commission has revealed a radical scheme designed to tackle climate change with a package of measures that will push up costs for industry and consumers.
But important decisions on how some of the most polluting industries will be made to cut their CO2 emissions have been delayed until 2010.
Yesterday, the commission said it wanted to transform Europe’s energy supply by 2020 by setting national targets for power production from renewable sources.  This includes wind and bio-fuels.  It will also make big polluters pay for the carbon emission permits that they currently receive free.
The proposals could push up power bills by 10pc-15pc.  They have yet to be approved by the European Parliament.  Commission president Jose Manuel Barroso said it was a small price to pay to help avoid an environmental catastrophe that would cost much more.
Central to the commission’s proposals is reform of the Emissions Trading Scheme (ETS), which allocates a fixed quota of emissions permits to heavy industry. Two new gases, nitrogen oxide and fluorocarbons, were added to the scheme, as were new industrial sectors such as aluminium and ammonia.
Brussels will now set central quotas for ETS emissions instead of leaving it to members.