EU capped carbon emissions fall

A sharp drop in carbon emissions across the European Union emissions trading scheme underscored the impact of recession on industry, with an overall 11.2% drop in 2009. The metals sector registered the biggest fall, by 30%, while Estonia, Romania, Belgium, Spain and Italy registered some of the biggest falls across individual countries. "It reflects the impact of a very deep recession on output, and a greening of European power in a move toward gas and renewables," said Barclays Capital analyst Trevor Sikorski. Power demand was down 5-6% last year but the electricity generation sector's carbon emissions showed a steeper 9% drop, underlining a move to zero carbon wind and low-carbon natural gas. The EU ETS limits the carbon emissions of about 11,000 factories and power plants, covering 44% of EU emissions, and is meant to drive the 27-nation bloc's compliance with targets under the international Kyoto Protocol.