Sept 23, 2010
The European steel industry may get only 60 percent of the free carbon allowances it needs under a regulatory draft that may “kill” producers, the lobby group Eurofer said.
The European Commission, the EU regulator, is devising efficiency benchmarks for allocating almost 100 billion euros ($133 billion) of emission permits after 2012. The regulation drafted by the climate unit to distribute a dwindling supply of free permits in the world’s biggest cap-and-trade program is “far too ambitious,” said Eurofer spokesman Axel Eggert.
The EU agreed last year to give a larger share of a free permits to 164 manufacturing industries, including most steel- related production. The protections for phase three of the cap- and-trade program, which runs from 2013 to 2020, is designed to prevent EU manufacturers from fleeing to less-regulated regions, a concerns known as “carbon leakage.”
The amount of free permits for the steel industry under the draft is too low to allow EU companies to stay competitive and invest in cleaner technologies, Eggert said. While the EU has not yet presented its benchmarking proposal to the 27 member states, Eggert said information available to Eurofer suggests steel firms will get less than two-thirds of what they need.
This article was posted: Thursday, September 23, 2010 at 10:11 am