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 11000 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.