European Union Sees Steep Decline in Greenhouse Gas Emissions

Apparently the emissions of greenhouse gases in the European Union have been on a very steep decline, according to new figures released just recently. Emissions covered by the EU Emissions Trading Scheme between 2008 and 2009 actually dropped by an amazing 11 percent following a 6 percent drop the year before.

Overall, this should be very welcoming news for environmentalist and people living in the European Union as as whole. However, some people are not so quick to jump on this bandwagon. Some experts go on to say that, unless caps are tightened on greenhouse gas emissions, there will be no overall reduction in pollution levels. Permits issued under the European Union trading scheme can be banked forward indefinitely.

This 11 percent drop in 2009 has left the caps on European emissions higher than actual emissions for the first time since the second trading phase started in 2008. The first phase of trading from 2005 to 2007 had the same problem with caps languishing high above actual emissions thanks to member states handing out overly generous allowances. This phase was meant to be a lot tougher, but the effect of the recession combined with continued generous allowances to heavy industries has lessened the impact.

Right now there are said to be some 62 million permits in circulation last year than there were emissions. An additional 70 million were released for sale in auctions, taking the total surplus to 132 million. So what does this mean? Well it means that the European Union is going to have a hard time reaching future emissions targets. This is because the trading scheme has given these companies a surplus of permits, or a very comfortable cushion, against the effects of any future caps.