Sweden accepts EU curb on carbon trade allocation

Electricity and district heating sectors will have to buy all permits required to cover carbon emissions

Sweden has decided not to grant any free carbon permits to electricity or district heating installations in the second phase of the EU trading scheme (ETS) after the European commission last year insisted it reduce its overall allocation (EED 29/11/06). The decision means the sectors will have to buy all permits required to cover their carbon emissions. Environment minister Andreas Carlgren confirmed yesterday the government's acceptance of the reduced allowance, which will stand at 22.5m tonnes annually from 2008-12. See environment ministry press release and allocation details (Swedish).

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