British companies were fined for the first time in December 2006, for failing to comply with a European scheme to control carbon emissions. The Environment Agency fined four companies a total of £750,000 between them, after they failed to account for their greenhouse gases under Directive 2003/87/EC, which establishes a scheme for greenhouse gas emission allowance trading.
The scheme, which has been in force since January 2005, targets the 535 firms responsible for the highest greenhouse gas emissions in Britain. The companies are required to either reduce their emissions or buy permits from other companies to allow them to pollute above their agreed limits. They must also submit details of the emissions and allowances to the Environment Agency.
Among the biggest culprits were Alphasteel, a steel recycling company from Newport, in South Wales, who were fined £564,560 after they failed to hand in details of their emission allowances for 2005 on time and emitted more than they were allowed. Daniel Platt, a tile company from Stoke-on-Trent, were fined £122,100 for missing the deadline by 15 weeks. The firms have two months to appeal.
Speaking about the penalties, Barbara Young the Chief Executive of the Environment Agency said, "The Stern review explained unequivocally that if we do not reduce emissions by at least 60% over the next 40 years, the cost in human and economic terms will be catastrophic. Unfortunately four companies out of 535 failed to surrender sufficient carbon dioxide allowances by the due date to cover their emissions. This is the cornerstone of the scheme, and as such they are liable to automatic civil penalties."
