Regulators stymie 'green' investment
25 Mar 2008
Chemical industry plans to invest in plants and process technologies that reduce emissions and improve energy efficiency are being thwarted by a lack of clarity over regulations. The situation has become particularly acute with the recent EU Emissions Tra
London - Chemical industry plans to invest in plants and process technologies that reduce emissions and improve energy efficiency are being thwarted by a lack of clarity over regulations. The situation has become particularly acute with the recent EU Emissions Trading Scheme (ETS) proposals, which could postpone decisions on the treatment of energy intensive industries until 2011.
Expressing disappointment, Nick Sturgeon, head of climate change and energy at the Chemical Industries Association, said, "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."
Likewise, BASF chairman Jürgen Hambrecht, speaking at the group's annual results conference, called for clarity to enable BASF to invest. "At the moment in Germany hardly anyone can make investment decisions due to the lack of clarity in regulations," he stated.
Citing a planned coal-gasification plant at Ludwigshafen, Hambrecht said it is now impossible to gauge the feasibility of projects. The company, he said, needed to make such decisions today, particularly as the current Kyoto agreement will expire in five years.
As part of its Carbon Balance initiative (see p18), BASF aims to reduce emissions by 25% by 2020 compared with 2002, and increase energy efficiency by 25%. This will be achieved in part by advancing technologies such as carbon capture and storage (CCS).
However, BASF director Harald Schwager said, "As long as there is no clarity as to how CO2 will be treated in an energy intensive industry there will be a postponement of [such] investments as the economic guarantee is missing."
BASF backs CCS technology, said Schwager, though he cited another stumbling block: "Would you want a gas cavern underneath your house or the gas pipe coming through your neighbourhood with all this CO2 coming through from Europe. This will be the discussion."
Expressing disappointment, Nick Sturgeon, head of climate change and energy at the Chemical Industries Association, said, "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."
Likewise, BASF chairman Jürgen Hambrecht, speaking at the group's annual results conference, called for clarity to enable BASF to invest. "At the moment in Germany hardly anyone can make investment decisions due to the lack of clarity in regulations," he stated.
Citing a planned coal-gasification plant at Ludwigshafen, Hambrecht said it is now impossible to gauge the feasibility of projects. The company, he said, needed to make such decisions today, particularly as the current Kyoto agreement will expire in five years.
As part of its Carbon Balance initiative (see p18), BASF aims to reduce emissions by 25% by 2020 compared with 2002, and increase energy efficiency by 25%. This will be achieved in part by advancing technologies such as carbon capture and storage (CCS).
However, BASF director Harald Schwager said, "As long as there is no clarity as to how CO2 will be treated in an energy intensive industry there will be a postponement of [such] investments as the economic guarantee is missing."
BASF backs CCS technology, said Schwager, though he cited another stumbling block: "Would you want a gas cavern underneath your house or the gas pipe coming through your neighbourhood with all this CO2 coming through from Europe. This will be the discussion."
