Major European Union carbon polluters released 0.3 percent more greenhouse gas emissions last year, despite a cap-and-trade system that aims to reduce Europe's contribution to global warming, AP REPORTED. The European Commission said the polluters taking part in its emissions trading plan had increased emissions, but at a rate well below the 27-nation bloc's economic growth of 3 percent. Total verified emissions were 2.026 billion metric tons of carbon dioxide. This only covers the heavy industry and power plants taking part in the trading plan and does not include other fumes from cars, trains and planes. In real terms, last year's emissions from the program were 0.8 percent higher than the 2005 figure, but the EU executive adjusted the figure to take into account 300 new trading participants, giving an increase of 0.3 percent. The EU's four biggest polluting nations _ Germany, Britain, Poland and Italy _ all increased carbon dioxide releases. Cleaner countries such as France _ which relies largely on CO2-free nuclear power _ Spain and the Netherlands cut overall emissions. EU Environment Commissioner Stavros Dimas insisted that the cap-and-trade system is still working, even though emissions are going up instead of down. «It is important to note that the rise last year was very limited and far below the rate of economic growth,» he said. The first stage of emissions trading, running from 2005 to 2007, has not been an unqualified success. Caps governing how much CO2 each nation could release were set much higher than actual emissions for 2005, meaning there was no push for polluters to change their ways. The system relies on a shortage of carbon release permits to give companies a financial incentive to cut back on carbon and switch to cleaner technology. Dimas said the EU is still learning by doing. «I am convinced that the strict caps we are putting on allowances for the second phase of the emission trading scheme starting next year will greatly contribute to cutting our emissions and help us reach our Kyoto targets,» he said. The commission said the lack of proper data on emissions before 2005 makes it hard to gauge the program's success. Some 10,605 heavy industry installations _ such as coal-fired power stations, steel plants and cement manufacturers _ took part in the program last year. Some 220 have so far failed to send in information on how much carbon they had released, missing a May 1 deadline. Most of these are small, and together they account for 0.2 percent of the overall carbon cap. Despite its efforts to tackle global warming by seeking a new global deal to reduce greenhouse gases in coming decades, the EU may only just meet its promise to cut emissions by 8 percent below 1990 levels by 2012 under the 1997 Kyoto Protocol on climate change.
