UK's Brown wants carbon trading bourse based in London UPDATE

UK's Brown wants carbon trading bourse based in London UPDATE

	Published : Mon, 12 Mar 2007 20:34 By : Agencies Print this Story

(Adds quotes, background)

LONDON (AFX) - British Chancellor of the Exchequer Gordon Brown has called for London to be the home of a global carbon trading market which he thinks could have a value of 100 bln usd.

In a speech on the environment, Brown said he intended to push his case through an international conference he will host here as he and opposition leader David Cameron battle for the 'green vote'.

Brown said the conference would discuss how different schemes in other countries could be linked and how to enhance trading with developing nations.

'My ambition is to build a global carbon market, founded on the EU Emissions Trading Scheme and centred in London,' he said.

'Today worth just 9 bln usd, emissions trading could grow to between 50 bln and 100 bln usd.'

Brown, widely expected to be the next Prime Minister after Tony Blair stands down later this year, was speaking ahead of publication tomorrow of the government's draft Climate Change Bill.

This is expected to outline targets for cutting greenhouse gases.

Brown told his audience the Bill 'will create for the first time a system of statutory carbon budgets which will place an overall limit on our cumulative emissions'.

'They will be set following advice from an independent Committee on Climate Change and the Bill will require an annual Parliamentary report on progress by government: a wholly new way of managing the UK's climate change effort, sustained by proper public accountability,' he said.

'Just as we manage our financial budgets over the economic cycle with prudence and discipline, so we will have to manage our carbon budgets with the same prudence and discipline. Chancellors of the Exchequer will now count the carbon as they currently count the pounds.'

Brown warned that any changes to the current tax system to punish polluters would have to be 'considered, costed, credible and consumer-friendly, not ill-conceived, short-termist, unworkable and unfair'.

This was seen as a direct rebuff to Conservative Party leader Cameron, who today promised to impose higher taxes on frequent flyers to cut carbon dioxide emissions.

However, Brown, who most likely will face Cameron in the next general election, was embarrassed by his hosts, the Green Alliance, who yesterday said the Conservatives' proposals on aviation fuel 'would take them ahead of where the government are at present, if they see it through'.

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