Oral question asked in the House of Commons, by Ian Cawsey (Labour). It was answered on Thursday, 25 February 2010 on behalf of the Department of Energy and Climate Change.

Greenhouse Gases (India and China)

Question: My right hon. Friend will be aware that not far from his constituency, in Brigg and Goole and other constituencies on the south Humber bank, are companies such as Corus, Singleton Birch and, in Goole, Guardian Glass, which are being expected—rightly—to reduce emissions as part of the Government's overall strategy, but are competing against companies that are setting themselves up and building new plants in countries with fast-growing economies, such as India and China. They feel that is unfair and that there is no level playing field, because they are having to take action that the companies in those other countries are not. When will my right hon. Friend be able to make more progress, so that we can report to workers in this country that they are not being unfairly discriminated against?

Answer: My hon. Friend has made an important point. It is because of that situation that there are provisions in the EU emissions trading scheme to protect against so-called carbon leakage. We give out allowances free to the most exposed sectors, rather than auctioning them. The European Commission is currently examining the different criteria, and will make further announcements later this year. The other point I would make is that there is also a first-mover advantage for us in getting ahead in this low-carbon technology, and it is important that we do that as well.

Secondary information