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Small emitters offered EU ETS opt-out

The Department of Energy and Climate Change (DECC) announced on Friday 25 May the UK will offer small emitters and hospital installations the opportunity to opt-out of the EU Emissions Trading Scheme (ETS) from 2013.

The aim of the opt-out is to cut down on the burden on smaller installations which experience higher costs from dealing with current regulations. Administrative costs for small emitters are estimated at over £1/tCO2, while large emitter costs are estimated to be £0.04/tCO2. To be eligible to opt-out, an installation must have verified emissions below 25,000tCO2e and a thermal combustion capacity under 35MW.

The government estimates that a quarter of UK EU ETS installations may be eligible to opt-out; these 250 eligible installations save up to £80mn by opting out of Phase III (2013-20). The application period for the opt-out closes on 18 July.

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