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Climate Change Bill [HL]

My Lords, at the moment—for ever, as far as I can see—we have no alternative in the EU Emissions Trading Scheme. We cannot tell companies in this country that they cannot buy unit credits from elsewhere in Europe. The noble Lord, Lord Teverson, is shaking his head. In the EU ETS the Government cannot prevent companies buying credits if they are exceeding the budget that they are allocated. If the scheme expands beyond Europe, that will become an issue. My expectation is that any such agreements will be negotiated by the European Union, not by this country. The terms on which credits can be bought or sold would depend entirely on those international agreements. It is inconceivable that if an agreement were made to expand the EU ETS to include say, America or Australia, it would be on the same terms. It is difficult to imagine that it would be otherwise.