The European Union’s plan to include the with the UK government unwilling to earmark auction revenues for funding eco-projects. The proposal to make the aviation sector a part of was put up for vote at the European Parliament last month and
The cap-and-trade scheme is scheduled to take-off in 2012 and all airlines originating or landing at EU airports will be subject to it. It was agreed that EU would dole out 85 per cent of the carbon permits for free , the remaining 15 per cent to be auctioned off and the revenues thus earned by governments “be used to tackle climate change in the EU and third countries..”.
However, now the UK government is strongly opposed the deal as it does not want “hypothecate revenue”, that is, it does not want to set aside the auction revenues solely for environmental projects. A government spokesperson said that the UK governement wanted flexibility in making financial decisions and that “does not mean we do not spend on green initiatives, but we do not assign different pots of revenue to do that.”
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