Few firms allocating money to EU emissions trading scheme 

An independent study has found that only 36 per cent of European companies affected by the Kyoto protocol's emissions trading scheme have actually planned a budget to comply with the EU's greenhouse gases (GHG) reduction targets.

The survey, which was carried out by research firm Coleman Parkes for consulting group LogicaCMG, polled 250 senior executives in the UK, Germany, the Netherlands, Belgium, France, Italy and Spain.

Results showed that nearly half of all European companies are not sufficiently prepared for Emissions Trading Scheme compliance coming into effect on 1 January 2005. "Only 34% of automotive companies, 35% of pulp/paper companies, 42% of iron/steel companies and 49% of cement companies expect to be ready in time for the start of the scheme on 1 January 2005," the conclusions read.

Almost all of the senior executives (91 per cent) said their firms were taking some action, but most took the form of impact assessments on how the scheme would affect their profit margins. Two-thirds said they had allocated staff to manage emissions trading regulatory issues.

More surprisingly, a relatively high proportion of those surveyed (20 per cent) said they were unsure about whether they should be buyers or sellers on the carbon market put in place under the emissions trading system.

The survey comes out a few weeks after commissioner Wallström expressed disapointment at the fact that only twelve Member States had sent their National Allocation Plans (NAP) for approval (see

).