Carbon Trading - Emission Impossible

That the Parliament welcomes the establishment of ARREST, an EU-25 wide campaign calling for “A Real Review of EmissionS Trading”; believes that the European Union’s Emissions Trading Scheme (EU ETS), though well-meaning, is fundamentally flawed and unlikely to be effective in tackling climate change in an efficient, effective and equitable manner; strongly feels that ownership of greenhouse gas emission permits should be allocated to all adults on an equal per capita basis, not to existing large polluters free of charge under a grandfathering arrangement as is presently the case with the EU ETS; notes that a chronic oversupply of permits in the European market led to a collapse in the value of carbon from 29 euros per tonne in late April 2006 to a value in mid-May of less than nine euros per tonne; considers that such an oversupply is symptomatic of the total inability of the scheme to effectively address European carbon emissions, and calls on the Scottish Executive to make representations to the European Commission calling for a thorough review and a dramatic overhaul of EU ETS.