The Royal Dutch/Shell oil group has launched its own internal system for trading emissions, mirroring the kind of global system being discussed for controlling atmosphere-damaging greenhouse gases.

Shell has set up a dedicated website for group companies that will serve as a platform for trading emission permits, each equivalent to 100 tonnes of carbon dioxide or the methane equivalent.

Each participating company is to be issued with permits equating to 98% of its 1998 emissions, the most recent figures available. This will force a 2% reduction in any case. Then, if they need to, participants can buy additional permits from other members of the group who don't require them because their own emission levels are falling. Only a limited number of permits are available, so it will not be possible for emissions overall to increase.

Shell has pledged to cut its greenhouse gas emissions by 10% across the group by 2002. It hopes that the new trading system will serve as a model for other companies.

Elliott Chase