Chemical industry slams EU Emissions Trading Scheme plans
28 Jan 2008
CIA calls for greater certainty following the European’s Commission’s proposals for the EU Emissions Trading Scheme. The industry group also urged the UK Government to support harmonised EU rates for auctioning emissions allowances
London - 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. The industry group also urged the UK Government to support harmonised EU rates for auctioning emissions allowances.
“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, said Nick Sturgeon, CIA head of climate change and energy.
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.”
The CIA is also concerned by UK Environment Secretary of State, Hilary Benn’s call for individual member states to be given the flexibility to set independent levels of auctioning. This, it claims, clashes with 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,” said Sturgeon.
