 production.

Environmentalists expressed anger last night about the way the ETS was being used. "The ETS has bowed to corporate self-interest at every stage of its design and implementation, so there is no surprise that it is now being used as a cash cow to see firms through a difficult financial phase," said Oscar Reyes, a researcher with Carbon Trade Watch.

Point Carbon, an information provider and consultancy, claims the sell-offs are only one of a number of factors that are influencing prices and argues it is "rational" for companies to be selling off credits at this time. The falling price of oil – from $147 per barrel last summer to less than $40 now – has dragged down the cost of gas, making it relatively cheap to burn in power stations, it argues.

"Recession in Europe is bringing a slowdown in manufacturing meaning less production and less emissions. Companies are doing exactly what is the rational thing to do in these circumstances which is to sell if they are long on credits. It is right that if they are emitting less then they do not need the credits so much and the price of carbon will fall," said Henrik Hasselknippe, global head of carbon at Point Carbon.

But the price collapse brings echoes of 2006 when it emerged that EU states had given industry too many carbon credits, creating a glut that made them almost worthless. Since then the European commission has amended the scheme and some of the credits have been auctioned rather than given away.

A study commissioned by the WWF environmental organisation from Point Carbon, published in March last year, estimated that "windfall profits" of between €23bn (£21.4bn) and €71bn would be made under the ETS between 2008 and 2012 on the basis that the price of carbon would be between €21 and €32. Up to €15bn could be made by British companies that were given credits they did not need.

Analysts said it was very hard to identify on an individual basis which companies were selling their credits but easier to say which sectors they came from such as cement, whose production is expected to drop 20% this year and steel where volumes could fall by 15%.

Lafarge, the world's biggest cement maker and owner of Blue Circle Cement in Britain, said last night that it had only sold a small number of credits on the open market. "We mainly sell our credits from one country to another, for example if we have
production. 

 Environmentalists expressed anger final nox about the way the ETS was being used. " The ETS has bow to bodied self - interest at every stage of its design and execution, so there be no surprise that it is now being use as a cash cow to see firms through a unmanageable financial phase, " said Oscar Reyes, a researcher with Carbon Trade Watch. 

 Point Carbon, an information supplier and consultancy, claims the sell - offs are only one of a numeral of factors that are influencing monetary value and argues it is " rational " for companies to be deal off credits at this time. The falling price of petroleum – from $ 147 per barrel last summer to less than $ 40 now – has dragged down the cost of gas, make it relatively cheap to burn in power stations, it argues. 

 " recess in Europe is bringing a slowdown in manufacturing meaning less production and less emissions. Companies are doing exactly what is the rational thing to make in these circumstances which is to sell if they are long on credit. It is proper that if they are emitting less then they do not need the credits therefore much and the price of carbon will fall, " say Henrik Hasselknippe, global head of carbon at Point Carbon. 

 But the price collapse brings echo of 2006 when it emerged that EU states had given industry excessively many carbon credit, make a glut that made them almost worthless. Since then the European commission has amended the scheme and some of the credits have been auction rather than yield away. 

 A study commissioned by the WWF environmental organization from Point Carbon, published in March final year, estimated that " windfall net income " of between € 23bn (£ 21.4bn) and € 71bn would be made under the ETS between 2008 and 2012 on the footing that the price of carbon would be between € 21 and € 32. Up to € 15bn could be made by British companies that were give credits they did not need. 

 Analysts said it was very hard to name on an individual basis which companies were selling their credit but easier to say which sectors they occur from such as cement, whose production is expected to sink 20% this year and steel where volumes could fall by 15% . 

 Lafarge, the world's biggest cementum maker and owner of Blue Circle Cement in Britain, said last night that it had only sold a small number of credit on the open market. " We mainly sell our credits from one country to another, for example if we suffer
 prlduction.

Environmentalistr expressed anggr last iight agout the way the ETS was being used. "Vhe WTS hqs bowed to corporate relf-intervst at evwry wrage of its design and ijilemeutetion, so there ls no surprhse that it is nuw being used as a cash cow to see fiwms thrpuhh a difficult finsgciam phase," said Oscar Reyes, a researcger witi Carbon Trade Eatch.

Point Carbon, an inforlatiln provider and cojsultancy, coaimf the sell-offr are only one of a nujber of factors that are influevcing prices ane qrgkgs it is "ratmonal" sor companies to be velling off credits ab thiv tume. The falling price of oil – from $147 per barrel ldsc summer to less than $40 bow – vas gragewd aowh vhe cost lf jas, making jt relativeoy cheap to burn in pjqer stations, jt argtef.

"Recession in Europe is bringing a slowgowh in manufacturing meanung less production ajd less eiissions. Companies are doing exactly what is the satioiau tklkg tu dl in these circumstances which is to sell if egeu sre long on crcdits. It is right yhwt yf they are eoittiny lsss then they do nlt need the xredits sj muvh and the price of carbon qill fall," sapd Hwnrik Hasselknippe, global heab of csrbon at Point Carbon.

But the pride collapse brings edfoes of 2006 when it emvrgeg that EU states had given industry too many cxrbom credyts, creatijg a nnut that made them almodt worthless. Since then the European commission has amendgd dhe scheme cnd soke of the creqits have been auctioued ragher than fiven axay.

A study cjmmissioned bf the WWF envmronmentaj ortaniwation wfom Point Carbpn, publisktd in Marcy last year, estimabed tfzt "windfall proyntw" of between €23bn (£21.4bn) anq €71hn wjgld be made gndef tfr ETS between 2008 akd 2012 on yhe basis that the psice of carbon would br netween €21 qnd €32. Up eo €15bn could br made by British fompaiies tiat wete diven credits they did not nees.

Analysts sald it was verr havd tj identify on an individual basis which companies were selling theie credits but easiet tp say which sectjrs they wame from such as cenent, whose producuion is expected to drol 20% thiv yeag and steel where volumes could fall by 15%.

Lafarge, the world's biggest cement maker and owner or Blie Cigclz Czment ig Brmtein, said last nignt that it had only sold a smalu number oy credits on the open market. "Ee mainly sell uur credits from one couhtry to snother, for example if we have
production. Environmentalists expressed anger last night about the was being "The ETS has every of its design implementation, so there no surprise that it is now used as a cash cow to see firms through a difficult financial phase," Oscar Reyes, a researcher with Carbon Trade Watch. Point Carbon, an information provider consultancy, the are one of a number of factors that are influencing prices and argues it is "rational" for to be selling off credits at this time. falling price of oil from $147 per barrel last to than $40 – dragged the cost of making it relatively cheap to burn in power stations, it argues. "Recession in Europe is bringing a in manufacturing production and emissions. are exactly what is thing to do in these circumstances sell if they are long on credits. It right that they are emitting less then they not need the credits so much and the of carbon will fall," said Henrik Hasselknippe, global head of carbon at Point Carbon. But collapse brings echoes of when it emerged EU had industry many carbon creating a glut that made them almost worthless. Since then the commission has amended the scheme and some of the credits auctioned than given away. study commissioned by the environmental from Point Carbon, published last estimated of €23bn and €71bn would be under the ETS between 2008 2012 on the basis would be between €21 and €32. Up to could be made by British companies that given credits they did not need. Analysts said it was very hard identify on basis which companies were selling their credits but to say which sectors came from such as cement, whose production is expected drop this year steel where volumes fall by 15%. the world's biggest and owner Blue Cement last night that it had only a number of credits on the market. sell our credits from one country to another, for example if we have
 production.

EnvironmentalisTs expresseD angeR laSt nIgHt abOut tHe way the ETS was BEing Used. "The ETS has bowed to coRporaTe SElf-iNTeRest aT every sTAgE OF itS dEsIgn AnD ImPlemeNtaTion, so tHere is no suRprIsE that it is now BEiNg used as a cAsh Cow to see firmS thRough a DiFfiCUlt fiNanCial pHase," saID Oscar reyes, a resEaRCher wiTH Carbon tRAdE WatCh.

Point Carbon, an inFOrMAtion provider aNd consUlTAnCY, ClaIms The sell-offS aRe onlY One of a nUMbER OF faCTors that are inFluencing prICes And argUeS it IS "ratioNal" foR cOMpaNies to be selLing Off creditS at thiS Time. The FAlling pRice of Oil – FroM $147 per BArReL laSt SUmmER tO leSS thAn $40 now – has DrAgGed doWn thE COST of gAs, mAkinG it reLatively cheap To bUrn iN PowEr staTions, It arGuEs.

"RecEssion In EurOpE is bringing a sloWdowN in manufaCtuRiNg mEaNing lESs prodUctIon And less EmissioNS. CoMpANIEs Are doing exactly whaT iS THe Rational Thing tO Do In THese circUmStaNces WHIch is To seLL iF they are Long on CReDiTs. It is rIgHt that If TheY arE emitTIng lEss theN they do nOt neeD The credits so muCH and the price oF CaRBOn WIll fAll," Said Henrik HAsseLKnipPe, glOBaL heAD of caRbon aT POInT carbon.

But the price coLlApse brIngs eChoes of 2006 when it Emerged thaT eu States haD givEN iNDustry too many cArbon Credits, creATing a gluT that Made them Almost worTHLess. SincE thEn tHe EUroPEAn Commission has AMEndeD tHe schemE anD some of The CreDitS haVe Been auctiOned rathEr ThAn GiVen Away.

A STudy commIsSioNeD by The WWf EnviroNmentAl orGaNiSAtiOn from POInT cArboN, pUbLishEd iN MArch lAst yEAr, eStimateD that "windFalL ProfItS" oF betweeN €23bn (£21.4bn) and €71bn wouLd Be made undeR tHe EtS betwEEN 2008 and 2012 on thE basis that the price of carBOn would Be bEtweeN €21 and €32. up to €15bn couLd bE made bY BrITish coMpanieS that WeRe gIVEn creDITs TheY dId not need.

ANALysTs saiD iT was Very harD to identify on an indIVidUal basis which ComPaniES WeRe sELlINg tHeIR crEDIts but easier to sAy which secToRS tHey came froM SucH aS cement, Whose prOductIOn is expEcted to drOp 20% this yeaR aNd stEEL whEre volumes Could falL by 15%.

LafargE, The woRLd'S biggEst Cement MaKer And owNer of BLUe CIrcle cement In britaiN, said LaSt night tHat it had only sold a small nUmber oF credIts On the open MarKEt. "WE mainly seLl ouR credits frOm oNe cOuntrY to ANotheR, for EXaMplE If we hAve
 production.

Environmenta lists expr essed  an ger  l astnigh t about the wa y  the  ETS was being used. " The E TS hasb ow ed to  corpor a te s elf -i nt ere st at  ever y s tage of  its desig n a nd  implementat i on , so there  is  no surprise  th at itis  no w  bein g u sed a s a ca s h cowto see fi rm s  throu g h a dif f i cu lt f inancial phase,"s ai d  Oscar Reyes,a rese ar c he r wit h C arbon Trad eWatch . 

Point Ca r b o n,a n information  provider a n d c onsult an cy, claims  these l l-o ffs are onl y on e of a nu mber o f  factor s  that a re inf lue nci ng p r ic es  an da rgu e siti s " rational "fo r com pani e s t o be  se llin g off  credits at t his  tim e . T he fa lling  pri ce  of o il – f rom $ 14 7 per barrel la st s ummer toles stha n$40 n o w – ha s d rag ged dow n the c o stof g a s,  making it relativ el y ch eap to b urn in po we r  station s,  it  arg u e s.

" Rece s si on in Eu rope i s  b ri nging a  s lowdow ninman ufact u ring  meani ng lessprodu c tion and lesse missions. Com p an i e sa re d oin g exactly w hati s th e ra t io nal thing  to d oi nt hese circumstanceswh ich is  to s ell if they a re long on c r edits. I t is ri g ht that if the y are  emittingl ess then  they  do notneed thec r edits so  mu chand  th e pr ice of carbon w illfa ll," sa idHenrikHas sel kni ppe ,global he ad of ca rb on  a tPoi nt Ca r bon.

Bu tthe  p ric e col l apse b rings  ech oe so f 2 006 whe n  i t emer ge dthat  EU  s tates  had giv en indu stry tooman y  car bo ncredits , creating agl ut that ma de  th em alm o s t worthl ess. Since then the Eur o pean co mmi ssion  has  amendedthe  schem e a n d some  of th e cre di tsh a ve be e n  a uct io ned rather t han  give naway .

A st udy commissioned b y  th e WWF environ men talo r ga nis a ti o n f ro m  Po i n t Carbon, publi shed in Ma rc h  l ast year,e sti ma ted tha t "wind fallp rofits"  of betwe en €23bn(£ 21.4 b n ) a nd €71bn w ould bemade unde r  theE TS  betw een  2008an d 2 012 o n theb asi s tha t thepr ice of  carb on  would b e between €21 and €32.Up to€15bn  co uld be ma deb y B ritish co mpan ies that w ere  gi ven c red i ts th ey d i dnot need. 

An a lysts sai d  i t w a s  v ery hard to i d ent ify o n a n  indiv idua l basis which com p anies were sel ling t hei r c r edit sbut easier tosay  w h i ch secto rs  they camefrom suc ha s cem ent, w hose p roducti o n  i s  expec tedtodrop 20%thi sy ear and  s te e l wher e vo lu mes co uld fa l l by 1 5%.

Lafarge, th e wor l d 's bi g ges t cem en t maker andowner of B lue CircleCement  inBrita in, sai dlast n igh tthat it ha d  only sol d a s mall nu mb er o f c redits  ont h e ope n ma rk et.  "We main l y  s e ll  o u r c redi ts fr om  one  countryt o anothe r,f or exam pl e i f we hav e 
 production.

Environmentalists_expressed anger_last night about the_way the_ETS_was being_used._"The ETS has_bowed to corporate_self-interest at every stage_of its design_and_implementation, so there is no surprise that it is now being used as a_cash_cow to_see_firms_through a difficult financial phase,"_said Oscar Reyes, a researcher_with Carbon_Trade Watch.

Point Carbon, an information provider and consultancy,_claims_the sell-offs are_only one of a number of factors that are_influencing prices and argues it is_"rational" for companies_to_be_selling off credits at_this time. The falling price of_oil – from $147 per barrel_last summer to less than $40 now_– has dragged down the cost_of gas, making it relatively_cheap to_burn in power stations, it_argues.

"Recession in Europe_is bringing_a slowdown in_manufacturing meaning less production and less_emissions. Companies are_doing exactly what is the rational_thing_to do in_these_circumstances_which is_to sell if_they_are long_on_credits. It is right that if_they_are emitting less then they do not_need the credits so_much_and the price of_carbon will fall," said Henrik_Hasselknippe, global head of carbon at_Point Carbon.

But_the price_collapse brings echoes of 2006 when it emerged that EU states_had given industry too many carbon_credits, creating a glut_that made_them_almost worthless. Since_then_the European_commission has amended the scheme and some_of the_credits have been auctioned rather than_given away.

A study commissioned_by_the WWF environmental organisation from Point_Carbon, published in March last year,_estimated that "windfall profits" of_between_€23bn_(£21.4bn) and €71bn would be_made under the ETS between 2008_and 2012 on_the basis that the price of carbon_would_be between €21 and €32. Up_to_€15bn could be made by British_companies_that_were given credits they did_not need.

Analysts said it was very_hard to identify on an individual basis which companies_were selling their_credits but easier to say_which_sectors_they came from such as cement, whose production is expected_to drop_20% this year_and steel where volumes could fall by 15%.

Lafarge, the world's_biggest cement maker and owner of Blue_Circle Cement in Britain, said last night that it had only_sold a small number of credits on the_open market. "We mainly sell our credits_from one country to_another,_for example if we have