Rusland overweegt handel in broeikasgas-emissierechten (en)

Less than two months before the official kick-off of the EU emissions trading scheme, the market is already hotting up.

Financial Times Deutschland reports that trading in emissions quotas has gone up five fold in recent weeks - from 150,000 tonnes traded per week in August to the current 750,000 tonnes a week.

The EU scheme will be the first multi-national emissions trading scheme in the world and will cover all 25 member states.

The new rules aim at creating an EU market in greenhouse gas emissions to protect the environment.

Companies that exceed their CO2 quotas may buy emissions permits from companies not meeting their targets, or pay a fine for each tonne they emit above their targets.

Russia to set up domestic scheme

The idea is spreading rapidly throughout the world, with Russia now considering setting up a domestic emissions trading scheme that could link to the EU scheme, and a potential scheme in Canada, from 2008.

"Russia cannot integrate as a full member of the EU system because it is not a member of the EU, but our system could be developed so it is complementary", said Vsevolod Gavrilov, the Economic Development and Trade Ministry official charged with drawing up Russia's mechanisms for implementing Kyoto, according to Reuters.

Russia should be able to earn billions of dollars from trading its spare quotas, he said.

In Canada and Switzerland, concrete plans for emissions trading systems are being worked on, while in Japan the process has not come as far, according to Point Carbon, a company analysing the greenhouse gas market.

Japanese companies strongly oppose the idea of an emissions trading scheme, as it would mean mandatory caps on their greenhouse gas emissions.

12,000 businesses included

The European system for emissions trading will be launched in 2005, covering two periods (2005-2008 and 2008-2012).

It will include some 12,000 European businesses in the energy sector (combustion, refineries, coke furnaces) and industry (ferrous metals, paper and minerals), which account for more than 46% of all European carbon dioxide emissions.