The Carbon Trust: A model for fostering low carbon innovation in the transition countries?

This paper argues that fostering low carbon innovation is key to achieving two EU policy goals simultaneously: reducing carbon emissions and being competitive. The UK has ambitious goals in reducing its carbon emissions by 60% in the long term and has set up the Carbon Trust as an independent, non-profit company, led by business but financed by the government. Its mission is to help businesses to cut their carbon emissions and to support the development of low carbon technologies. The aim of this paper is to analyse the Carbon Trusts activities and to discuss to what extent the Carbon Trust approach could be a model for the transition countries in Central and Eastern Europe. The analysis is based on 26 semi-structured interviews, as well as a literature and documentary review. It finds that the Carbon Trust approach is promising, but that there are substantial difficulties in transferring this model to the transition countries.