The United Kingdom held the first European auction for carbon allowances today, initiating the transition toward a “polluter pays” system for greenhouse gases.

Companies covered under the European Trading scheme must have one allowance for every tonne of carbon dioxide they emit. Until now governments have freely distributed allowances in order to soften the impact on industry during the early years. But given that each of the allowances has monetary value on the European carbon market, this is akin to giving away money.

The UK is the first country to avail itself of an EU rule allowing governments to auction up to 10 percent of the allowances between now and 2012. Selling four million allowances at a rate of 16.15 euros per tonne, the UK hauled in nearly 65 million euros (US $81 million). Next year the country plans to sell upward of 25 million allowances, according to Reuters.

Beginning in 2013, the goal is to auction all of the allowances; rules for doing so are currently under debate within the European Union. Under such a system, companies must pay for the right to pollute, which raises revenue that can be used to address global warming.

At least that’s the theory. Governments can also just raise revenue – which isn’t easy to come by at present – and do what they please with it. As noted by several critics in the Guardian, the UK government has so far refused to dedicate these revenues to climate solutions.

The UK had initially planned to sell 23 million allowances this year, but that plan was delayed by logistical problems, according to Point Carbon, a consultancy based in Oslo, Norway. Point Carbon says other EU countries were planning to hold auctions this year but have not implemented legislation and institutions to do so.