Yet More Holes Appearing In European Emissions Trading Scheme

This from this morning’s Financial Times

Businesses covered by the European Union’s emissions trading scheme are following talks this week among member states on its future operation.

At stake is the extent to which they will have to buy carbon permits at auction rather than get them free, as most have until now. The European Commission wants to phase in auctions between 2013 and 2020, with the idea that most companies would pay for all or almost all their permits by 2020.

But business lobby groups are pressing for concessions to reflect the economic downturn, and some are likely to be granted. They want more free permits, particularly for industries judged at risk from international competition.

Companies making steel, cement and paper, among others, have been pressing for special treatment. But the extent of the threat of “carbon leakage” – the closure of operations in regions with strict emissions regimes and migration to more lax jurisdictions – is hotly disputed.

The Commission is not expected to rule on which sectors are most at risk of carbon leakage until 2010.

Ten sectors are expected to be covered by the scheme in 2013: electricity generation; oil refining; iron and steel production; cement, clinker and lime production; glassmaking; brick and tile manufacturing; pulp and paper production; aluminium; ammonia production and petrochemicals, and aviation.

And officials here can tell Ministers with a straight face that we can’t change our scheme because of a backlash from Europe………………

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One Response to “Yet More Holes Appearing In European Emissions Trading Scheme”

  1. adamsmith1922 Says:

    And Green Party and Labour Party politicians peddle the same manure to the media

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