Responding to today's (Friday) announcement by the Government that it will issue industrial emissions allowances based on its original plan while starting legal proceedings against the European Commission over the Commission's rejection of the UK's revised plan, Michael Roberts, CBI Director of Business Environment, said:
"We were disappointed that the Commission rejected the amended allowance figures under the UK national allocation plan, submitted by the Government last November. These figures were based on better emissions data than before and were fairer for British business.
"So the CBI backs the Government's decision to launch a legal challenge against the Commission. It is in all our interests to make sure that emissions trading succeeds and that depends, in part, on allocations which are accurate.
"In the meantime, businesses need certainty about their obligations under the trading scheme. Under the circumstances, the Government's decision to base allowances on the earlier figures is the right call to make - though that will put the spotlight on what more the power companies can do to cut emissions.
"But the Government also needs to learn from this episode. The whole process has not been handled well. With big decisions still to be taken about future phases in the scheme, it is important that Government works more effectively with business next time around."