BRUSSELS, June 13 Mechanisms in the European Union's emissions-trading scheme that let members buy carbon credits from non-EU states could hurt the system, a new report says.The World Wildlife Fund report, "Emissions Impossible," released Wednesday, examined the carbon-reduction plans of the United Kingdom, Germany, Poland, Ireland, France, Spain, Netherlands, Portugal and Italy. The study estimated that under the ETS, 88 percent to 100 percent of their combined emissions reductions targets could be met by buying credits from non-EU members. The WWF says the first phase of the ETS, scheduled to end at the end of the year, was "seriously undermined by weak political decisions." "WWF's report shows that there are now significant concerns that the second phase (2008 to 2012) will also fail to deliver any significant emissions reductions within the EU because of the potential for very heavy use of imported credits," the group said in a statement on its Web site. Under the ETS, bigger emitters can buy carbon allowances from companies that have cut their emissions. In phase 1, critics say, too many allowances were handed out, leading to a virtual collapse of the carbon market. In a bid to not allow this to reoccur, the European Commission said it would clamp down on caps proposed by member states, but it will allow industries to buy credits from non-EU projects."The European Commission's decision to allow companies to buy huge volumes of project credits means that heavy industry, including the power sector, could potentially buy its way out of cutting its own emissions," said Keith Allott, head of WWF-U.K. ' s Climate Change Program. "There is a real danger that this will lock the EU in to high carbon investments and soaring emissions for many years to come, wrecking the EU's emission reduction targets for 2020 and 2030 and making a mockery of Europe's standing as a world leader in tackling climate change." Copyright 2007 by UPI
