Government reports suggest that they wish to create an emissions market for small users who do not qualify for the National Allocation Plan under Kyoto. The government state that it is only the big players who seem to have to make emissions cuts and that the smaller players gain a competitive advantage. Most of this makes sense and from a politicians point of view is something which inspires the country to think that they know what they are talking about. However, markets do not work in isolation, and if a separate market is created where cuts have to be made, this will disadvantage small business globally. The age old argument with emissions markets are that the financing has to come from all and not the few, this argument is used by the US and it seems to work.

The smaller scheme might be in conjunction with a potentially new scheme coming out from the US. The Asia Pacific partnership seems to be slow of the mark, but Bush's comments on oil addiction and the fact that they are looking to develop new technology suggest that they have not given up on climate change. The reality is that if the US create something outside of Kyoto, Britain would do well to have a hand in both Kyoto and the APP.