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Trading carbon schemes

Updated on 13 March 2008

By Faisal Islam

One largely overlooked measure in yesterday's budget was the announcement that the government's carbon trading scheme will be replaced by a carbon auction.

Instead of firms being allocated permits to produce carbon from 2012 they'll have to buy them. It could be a major money spinner for the government, raising billions of pounds every year.

But calculations commissioned by Channel 4 News suggest it could also lead to a massive rise in household energy bills.

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