A pilot carbon trading scheme to help councils prepare for future mandatory initiatives has been launched.

More than 25 councils have already signed up to take part in the The Local Government Information Unit's (LGiU) voluntary carbon trading scheme, organised around Carbon Trading Councils. They provide an opportunity for local authorities to learn how to operate within a trading scheme and rehearse carbon monitoring and data gathering.

A group of local authorities met to hear from Defra about their plans for the statutory trading scheme – the Carbon Reduction Commitment. The CRC will involve large local authorities trading with other private and public sector organisations from 2010.

An LGiU spokeman said: "councils are going to need new skills and resources if they are going to take advantage of carbon trading and use it to prioritise their work on carbon reduction."

"By simulating all the aspects of a trading scheme, from measuring and planning through to actually buying and selling carbon, the LGiU scheme will help participants understand how trading works, but also show that local authorities can be pace setters in tackling climate change."