CO2 quotas are a commodity

The safest way to reduce CO2 emissions is to destroy CO2 quotas.

CO2 quotas are a commodity
All power stations in the EU have been allocated CO2 emission permits which authorise their emissions. If power stations reduce their output of electricity and therefore do not use their full quota, they can choose one of the following 3 options. The climate benefits from only the first of these:

  • Cancel quotas
    Emissions of greenhouse gasses at an EU level will thus sink below the 8% target to which the EU has committed itself in the period 2008-2012 under the terms of the Kyoto Protocol.
  • Utilise quotas
    It is cheaper to produce power from coal than from natural gas, so if there are unused quotas (permits) it is possible for companies to try to minimise their production costs by switching production to coal, thereby utilising the unused quotas.
  • Sell quotas
    Emission quotas can be sold to foreign producers.

Allocation of quotas
CO2 quotas are allocated in anticipation of the fact that consumers and industry will use energy more efficiently. This means that savings we make have already been factored into the allocation of CO2 quotas. In other words, the result has already been accounted for.

How to reduce your carbon footprint
If you want to be sure of reducing your personal carbon footprint you must purchase and destroy CO2 quotas (permits) at the same time as saving energy. At the same time, you should ensure that you choose an energy supply company which increases the proportion of renewable energy and therefore minimises the demand for fuel in the long term.

Page last updated 01.02.2010