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The Czech Republic and emissions trading

Journalist Tomas Sachr comments on emissions trading in the Czech Republic: "The British government's report on the economic repercussions of climate change has shaken the world, and more and more countries are now prepared to take active measures to reduce emissions. However, the Czech state plans to do the opposite. Despite the fact that carbon dioxide emissions in the Czech Republic went down to 82 million tonnes last year, the Czech government wants to apply for an allowance of 102 million tonnes per year. Why? Apparently because forecasts predict that the country's emissions will increase as a result of economic growth." According to Sachr, the problem is that many EU countries are doing the same and this could undermine the efficacy of the whole system of emissions trading. Companies that produce less carbon dioxide than estimated can sell their 'certificates' to other companies that are above their limit. However, because there is a surplus of carbon dioxide certificates, they are going down in value. "The low value of the certificates is undermining companies' motivation to reduce their emissions, so it's getting to the point where the whole system doesn't make sense any more."

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