Copenhagen climate summit: London should be hub of global carbon market, says CBI

World leaders meeting for climate talks in Copenhagen should form a global carbon market with London as its hub, the CBI has said.

By Heidi BlakePublished: 12:01AM GMT 07 Dec 2009
According to the business lobby group, the EU Emissions Trading Scheme (EU ETS), under which companies can buy carbon permits and their emissions are capped, should be rolled out internationally.
The CBI believes London should position itself at the centre of any future global carbon market. The City currently houses 80pc of the world's carbon market broking companies and 75pc of all carbon trading desks.

However, the CBI also warned that UK business could lose out unless emission targets are agreed across the world.
"With the right deal at Copenhagen, there could be huge opportunities for the UK," John Cridland, deputy director general of the CBI, said.
"But there needs to be a level playing field, or UK companies could find themselves at a serious disadvantage as manufacturers of commodities such as steel or cement shift production to countries where emissions targets aren't as tough."
The EU ETS, which was introduced in 2003, requires companies with a large carbon footprint to report their emissions annually, as well as subjecting them to a cap and allowing them to buy carbon permits.
Rolling the scheme out would enable a flow of funds and create a generation of "climate entrepreneurs" in the developing world, the CBI said.