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Carbon Dioxide Reduction Target

It would not be appropriate for the Government to specify a figure in the carbon market. The hon. Gentleman will be aware that phase 1 of the carbon emissions trading scheme has been a learning-by-doing phase, and we in the UK have certainly not pretended that it has been perfect—far from it. We have learned lessons, however, and we believe that the Commission has learned lessons, which is why phase 2 will represent a significant improvement and why the carbon price for phase 2 under shadow trading for 2008 contracts is significantly higher. We want to see a strong carbon price signal and it is important that the EU carbon trading scheme should receive popular support. It is the cornerstone of what could be an emerging world carbon market and we need to ensure that it is a robust scheme that ensures scarcity in the marketplace, which we did not see in phase 1.