Schedule 2
Climate Change Bill [Lords]
2:00 pm
Phil Woolas (Minister of State (Environment), Department for Environment, Food and Rural Affairs; Oldham East and Saddleworth, Labour)
Once again, I have learned the lesson that reading out the next paragraph in the brief saves time in the debate. I am sorry, I should have made matters clear.
As drafted, paragraphs 9 and 19 of schedule 2 allow for third parties to trade in allowances or certificates under a trading scheme. We believe that that is necessary, so that a deeper and more liquid market can develop as a result of the scheme than would be the case if only the participants—the actual organisations and companies, whether public or private, that were members of the scheme—were allowed to trade. Those paragraphs make a distinction between third parties and participants, and that is not replicated under paragraph 26 in connection with the power to levy charges towards a trading scheme.
Participants are those who have an obligation under the scheme, such as the company, the Department or the supermarket, that are typically there to surrender a particular number of allowances equal to their emissions—indirect emissions, in some cases—to acquire a certain number of certificates. Third parties are those who have no obligations, but decide voluntarily as a business to trade in the scheme’s allowances or certificates. I should have explained that I am taking the provision under paragraphs 9 and 19 and putting it under paragraph 26. If the hon. Member for Cheltenham wants a debate on other agencies, we will come to that.