Nearly a thousand companies transferred over seven million tonnes of carbon dioxide during the first year of the UK Emissions Trading Scheme (UK ETS), according to figures published by DEFRA.

The results confirm that this has been a very successful first year for the UK ETS, as companies begin to make use of the flexibility of trading which it provides to meet their targets and make cost-effective emission reductions.

Speaking at the 3rd Annual Emissions Trading Conference in London on 12 May, Environment Minister Michael Meacher said: " These are impressive figures which indicate very encouraging levels of activity for this fledgling market. UK business has gained valuable experience of trading in environmental markets, using specialist brokers, an online Registry, and undergoing verification and compliance procedures. This has been a very challenging year for both the Government and Participants in the Scheme as both get used to emissions trading. I am sure that we will continue to maintain our lead and establish the UK as the centre for greenhouse gas emissions trading as we move towards international trading systems."

The results published show that:

• 866 out of around 5000 companies with Climate Change Agreements entered into the UK ETS either to buy allowances to meet their target, or to sell any over-achievement.
• 35 non-target holders such as brokers and other have bought or sold on the market
• 31 out of 32 Direct Participants are in compliance and have met their emission reduction target.
• A total of 31,577,869 allowances have been allocated to companies, 7,216,105 of which have been transferred over the first year of the Scheme in 2001 transfers.

• A Transaction Log detailing all allowance transfers made on the Emissions Trading Registry in 2002.
• Allowance allocations made to participants and details of emissions performance
• Numbers of allowances 'retired' i.e. used to meet targets
• Commentary and summary of results.