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Next steps for EU carbon trading examined

Some key issues around the second phase of the EU's carbon emission trading scheme (2008-12) have been outlined by the UK government in a discussion paper. Expansion of the scheme to cover new sectors, such as aviation, and more greenhouse gases, are among the options. EU states have only until June next year to propose their outline national allocation plans (Naps) for the second phase. Most are likely to face stiff pressure to impose much stricter emission caps than they have applied in the 2005-7 first phase. See discussion paper.

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