How are permits created? If they are handed out for free why should I pay for them?

Permits have until now been handed out free of charge. This approach was taken to give companies time to adjust to the imposition of limits on something they had until now been able to do freely. It may seem crazy but that’s how it’s been organised to date. We believe this is the wrong approach and fortunately from 2013 on a large number of European polluters will have to pay up front for permits to pollute.

We believe the vast majority of polluters should have to pay. Governments can and should use the money received to support the development of cleaner technologies and to help people who are most vulnerable to increases in energy prices as limits on pollution get tighter and companies have to pay to adjust.

We don’t want to pay for permits if we don’t have to. Part of the membership fee goes to running a campaign to get companies with permits to give them to us for free – that is why for your membership fee we guarantee to cancel a set number of tonnes a year on your behalf but the actual number could be higher than that. We will also campaign to ensure far fewer permits are handed out in the next trading period which is set to begin in 2013. Decisions about how it will work will be being made in the coming years.