UK emission allocations - competitive disadvantage comes in many guises.

The article presents information related to the proposed allocations for the second phase of EU emissions trading in Great Britain. According to the British government's draft 2008-2012 National Allocation Plan, Drax Group will be allocated relatively less carbon credits than Scottish and Southern Energy PLC. It is argued that the competitive disadvantage of the decision will be relatively minor amid the current economics of coal-fired production.