EU OKs State Aid For UK Carbon Reduction Plan

Law360, New York (July 14, 2009, 12:00 AM EDT) -- The European Commission has approved state aid for Britain's mandatory auction-based carbon emissions trading scheme for nonintensive energy users, a system that uses financial and reputational incentives to encourage companies to develop energy management strategies.

Referred to as the Carbon Reduction Commitment, the national system is “a novel way” for providing incentives that induce changes in the behavior of companies not covered by the European Union emission trading system, the commission said Tuesday.

According to the regulator, which monitors whether government subsidies are compatible with EU...
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