Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effectiveness of the EU Emissions Trading Scheme.

The EU has an effective carbon market in the form of the EU Emissions Trading System (EU ETS). Since 2005 the EU ETS has been the world’s largest emissions trading system, limiting greenhouse gas emissions in the power and heavy industrial sectors. The Government recognises that while the EU ETS works well in terms of process, an oversupply of allowances in the system means it is not delivering the degree of low carbon investment it should. This is why we strongly support structural changes to strengthen the EU ETS and are actively pressing for reforms in discussion with EU counterparts and other stakeholders.