Financial Times FT.com

Carbon trading

Defra in storm over EU carbon scheme

By Fiona Harvey and Chris Bryant

Published: April 26 2007 22:03 | Last updated: April 27 2007 00:14

The government department spearheading Britain’s effort to reduce carbon output is driving companies and individuals towards paying under a European Union system for emissions cuts that do not take place.

The Department for Environment, Food and Rural Affairs has also channelled more than half of £215m paid out under a pilot UK greenhouse gas trading scheme to just four companies which spent considerably less than they received on emissions cuts.

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