Carbon bank proposed by Brown

by Richard Kilner

Story link: Carbon bank proposed by Brown

An independent European carbon bank would assist the EU’s efforts to combat global warming and augment the Emissions Trading Scheme currently in place, according to Prime Minister Gordon Brown, speaking in Brussels.

Brown has also called for weathy nations to co-operate and assist poorer nations in their transition to low carbon economies.

The EU must be at the forefront of the fight against global warming, Brown has said.

Under his proposals the carbon bank, instead of the European Commission, would set carbon caps and dictate how the European carbon credit market would function in the future.

However, it appears unlikely that other member states will support the idea.

Earlier, Brown had called for an independent competition authority that would handle mergers and state aid rather than the Commission, but few supported that proposal.

Three years ago the carbon price fell sharply due to the issuing of too many credits, allowing companies to make unexpected profits.