EU sees limit on industrial projects in CO2 scheme

LONDON Aug 25 (Reuters) - The European Union's top climate official proposed on Wednesday new limits on the use of carbon credits from industrial gas projects in the EU emissions trading scheme after 2012.

"The Clean Development Mechanism (CDM) has been successful in some aspects but has also given rise to criticism, e.g. with regard to environmental integrity," said Connie Hedegaard, Commissioner for Climate Action in a statement.

"As a first step towards a more advanced carbon market the CDM therefore needs a major overhaul."

"I have asked my services to prepare a proposal for a measure to introduce further quality restrictions on the use of credits from industrial gas projects in the post-2012 EU ETS." (Reporting by Gerard Wynn, Editing by Alison Birrane)