The EU Emissions Trading Scheme is failing to cut emissions and instead is penalising families and businesses, claims an independent thinktank.
The institute for the study of civil society Civitas claims that “finance and energy fat cats” are profiting at the expense of consumers because of flaws in the Europe-wide cape and trade scheme (EU ETS).
Civitas calculates that EU citizens subsidise the power industry by £30 a year via the scheme, which is designed to reward low carbon energy producers and force bigger carbon emitters to cut down.
Instead they allege energy companies are profiting from the EU ETS by earning windfall profits from their access to free EU ETS credits.
David Merlin-Jones, author of the ‘CO2.1 Beyond the EU ETS Emissions Trading Systems’ report said: “The EU ETS fails where it matters the most: in reducing global emissions. Some companies leave the EU to produce their emissions elsewhere, taking thousands of jobs with them. Others export their emission obligations onto the developing world to avoid their own responsibilities in a manner tantamount to neo-imperialism.”
Civitas wants the EU ETS to be scrapped along with all other green levies. In its place they want a ‘flat rate carbon tax’ which is applied to all energy installations and CO2 emissions previously covered by the EU ETS.