U.K. closer to carbon-trading scheme

LONDON, March 14 (UPI) -- All U.K. government departments will be included in an emissions-trading plan, Environment Secretary Hilary Benn said.

The same plan will target emissions from large businesses including supermarkets, banks, hotel chains and department stores, Benn said in a statement.

The Carbon Reduction Commitment is scheduled to begin operation in 2010 and is a mandatory emissions-trading scheme that will cover approximately 5,000 public and private organizations, including government departments, retailers, banks and local authorities, which combined account for 10 percent of the British economy's emissions.

Benn also announced that public-sector entities in England, including local authorities and hospitals, would be supported with about $60 million in interest-free loans over three years to become more energy efficient.

"The government has to show it's serious about reducing CO2 emissions," Benn said. "It won't be easy for all organizations in the public sector to cut their emissions quickly -- even though they'll be saving taxpayers' money in the long run by reducing energy bills."

This builds on an existing fund of about $42 million in loans, which has already helped about 100 schools, hospitals and local authorities fund nearly 1,000 conservation and efficiency projects.

The carbon-trading scheme is designed to save about 4 million tons of carbon dioxide per year by 2020 -- the equivalent of taking more than a million cars off the road. The plan is part of a law currently going through Parliament.