UK seeking CO2 trading increase

Defra said the details need finalising but the deal would help clean energy projects in developing countries.

But environment groups say some of the schemes would have gone ahead anyway.

European nations are currently expected to make around 70% of their carbon reductions on home turf, leaving 30% available for trade.

Reducing that domestic obligation to 50% could allow an extra billion tonnes of CO2 into the atmosphere, according to WWF.

The dispute centres on the credibility of the system used for trading international carbon permits - the Clean Development Mechanism (CDM) - arranged under the Kyoto Protocol.

It allows rich countries to offset some of their emissions reductions by purchasing carbon credits which help developing countries get clean technology.

Carbon trading is widely accepted in principle as it does not matter where in the world CO2 is cut because its warming potential is global.

'No saving'

In practice the CDM is under fire because some investors are obtaining credits for clean energy projects in countries like China and India that would have been built anyway, meaning that no CO2 is saved overall.

Various reports suggest that between 20% and 60% of CDM projects do not save additional CO2.

Even so, the leaked document (a so-called "non-paper", discussed between government departments but not yet stated policy) argues: "There are many good reasons why we should support increased access to project (CDM) credits.

Dr Keith Allott, head of WWF-UK's climate change programme, said: "This is an appalling proposal from the UK.

"Already the CO2 targets aren't nearly strict enough to avoid the risk of dangerous climate change as defined by scientists. This would weaken the effort even more.

"If governments and companies know they can trade away their responsibilities they will just take their foot off the pedal. We are claiming leadership… this hardly sounds like leadership does it?