RE: UK Allowance Release.... ,
 Thanks for the note - do we have any indication of the price?

Regarding the UK Emissions Trading Scheme:
We met with Sainsburys on Friday to discuss a number of issues including participation in the emissions trading scheme pilot in Q1 2002. They are interested in doing this and, given the short timescale, we are moving forward to assemble the necessary data package. Currently Sainsbury are working with Bridget Rosewell of Volterra Consulting who is on the ETG steering committee and is advising them on the political issues.
There are a number of issues we need to consider in putting together the bid:
1. Do we have any experience of descending clock auctions? It looks fairly straightforward but I would be grateful for any views.
2. There is concern that one of the large chemical/ cement makers/ etc could swamp the market and take the whole pot - any views?
3. Do we have a view on the price of carbon? We have a lot of details on the price of abating a tonne of carbon in a range of industries but little data on the potential price. The government target is to save 2 million tonnes / year therefore if the pot is ?30 million / year this  suggests a figure of ?15 / tonne. However I have seen higher and lower figures suggested as the targets however I would have thought that it will be necessary to achieve the lowest cost / tonne as this is funded by the taxpayer?

-----Original Message-----
From: Jacobson, Lisa 
Sent: 21 September 2001 17:37
To: Redshaw, Louis; Profir, Diana; Badger, Dan; Hussain, Mustafa; Woods,
Trevor; Taylor, Michael E; Oliver, John; Schoen, Mary; Bolton, Stacey;
Mainzer, Elliot; Keeler, Jeff
Subject: UK Allowance Release....


FYI only.  Forwarded from Natsource.  Please let me know if you have any questions.
lisa.jacobson@enron.com, louis.redshaw@enron.com, diana.profir@enron.com, 