EU Emissions Trading Scheme disappoints chemical sector

25 Jan '08

2 min read

The Chemical Industries Association called for greater certainty and understanding for energy intensive business following the European's Commissions published proposals for the EU Emissions Trading Scheme, as announced by president Jose Manuel Barosso. The sector also urged the UK Government to support harmonised EU rates for auctioning emissions allowances.

Commenting on the Commission's proposals Nick Sturgeon, Head of Climate Change and Energy said, "we are disappointed that the proposals postpones decisions on the treatment of industry until 2011 if the UN process is unsuccessful in delivering a post-Kyoto emissions agreement.

Sectors like chemicals, that are energy intensive and exposed to international competition, need reassurance that they will be shielded from the full cost of a unilateral EU move to auctioning.

Decisions on investment in new plant and innovation require long-term predictability with clear assurances that there will be a sustainable business environment under the revised EU ETS."

Nick Sturgeon added, "we are also concerned by Environment Secretary of State, Hilary Benn's, call for individual member states to be given the flexibility to set independent levels of auctioning.

This flies in the face of the Commission's proposals to harmonise the implementation of the EU ETS across member states.

There are likely to be an increased number of UK chemical sites within the scheme after 2012, so a level playing field within the EU is essential - in the UK we already have additional conflicting Climate Change instruments we must not be at further competitive disadvantage."

Chemical Industries Association

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