. Earth Science News .

Steel industry slams emissions 'set-aside'
by Staff Writers
Brussels (UPI) Feb 15, 2012

disclaimer: image is for illustration purposes only

Europe's steel industry this week stepped up its opposition to a proposal that would take more than 1 billion EU carbon emissions tax credits off the market.

The European Steel Association, or Eurofer, Monday joined a call joined a call from other business interests urging the European Commission to oppose a pending parliamentary bill to "set aside" 1.3 billion allowances under the European Union's emissions trading scheme.

A key European Parliament committee is to vote this month on changes to the EU's Energy Efficiency Directive that call for a "significant" number of ETS allowances to be removed from the market in an effort to prop up their languishing open-market price.

Backers hail it as a way to cope with a saturated market for the credits brought on by the economic slowdown -- prices for ETS allowances have dropped from a peak of $40 per ton in 2008 to $9.25 per ton.

The idea behind the trading scheme is to encourage companies to use energy more efficiently and save money through the installation of new technology to cut carbon emissions.

The steel industry and other pollution-producing businesses have purchased millions of the credits and are decrying moves to manipulate the market as a devaluation of the major investments they have already made.

Eurofer Director General Gordon Moffat said "this confiscation of allowances" to artificially raise the carbon price would only serve to "destroy" the ETS.

Moffat instead indicated support for remarks made last week by European Commissioner for Climate Action Connie Hedegaard, in which she seemed to come out against tinkering with the ETS market.

"We think it's important to have a market-based system," Hedegaard told the EU affairs news portal EurActiv. "None of us should be surprised that, in a market-based system, and with a major crisis in Europe and production coming down, demand and prices are dropping. We would be in for a lot more trouble if we had a politically regulated system."

Moffat agreed, saying in a statement, "We absolutely share (Hedegaard's) view that any manipulation of the EU's emissions trading market would destroy the whole idea of a market-based system.

"The low carbon price -- which is just a snap-shot of price development -- cannot serve as an excuse to introduce a floor price, a set-aside or any annulation of allowances, as currently proposed by some groups in the European Parliament."

The Parliament's environment committee last month backed a non-binding resolution to remove the permits from the market, with vote on the measure in the industry committee set for Feb. 28, the Financial Times reported.

"The commission knows that the emissions trading system is failing to provide a sufficient price mechanism to guide investment decisions," British MEP Chris Davies of the Alliance of Liberals and Democrats for Europe said in introducing the measure. "It must stop delaying and bring forward proposals to address the problems."

Opposition to another form of propping up the price of carbon tax allowances was also being felt in Britain, where a parliamentary committee in January blasted a proposal by British Prime Minister David Cameron to unilaterally set a set floor price for carbon at $25 per ton.

Whitehall contends the move would send a good signal to low-carbon technology investors but the panel of lawmakers feared it would instead harm Britain's international competitiveness in the absence of an EU-wide floor price, The Guardian reported.

Related Links
Global Trade News

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Obama celebrates return of jobs from China
Milwaukee, Wisconsin (AFP) Feb 15, 2012
A day after telling China's next leader his country must play by global economic rules, President Barack Obama Wednesday celebrated the return of US jobs from the vast Asian economy. Obama, seeking to boost manufacturing in key swing states hit by high unemployment as he cranks up his reelection campaign, touted plans to offer tax breaks to companies which bring jobs home from low-wage econo ... read more

Fukushima faces increased quake risk - study

Japan's Fukushima reactor may be reheating: operator

Top US general meets Egypt's Tantawi amid NGOs row

Bird numbers drop around Fukushima

Lockheed Martin-Built Milstar Satellite Surpasses 10-Year On-Orbit Design Life

Space debris in the spotlight

A mineral way to catalysis?

Cisco appeals EU's Microsoft-Skype merger approval

Reform of EU fishing quotas urged

Engage China in water dialogue: Experts

Ocean microbe communities changing, but long-term environmental impact is unclear

Ocean warming causes elephant seals to dive deeper

Fish of Antarctica threatened by climate change

Despite Nobel tiff, Oslo backs China Arctic Council entry

NASA Mission Takes Stock of Earth's Melting Land Ice

CU-Boulder study shows global glaciers, ice caps, shedding billions of tons of mass annually

New Zealand court suspends farm sale to Chinese firm

Use space technology for food security: Former ISRO chief

Rainfed-dryland farming needs more investment

Hatchery fish mask the decline of wild salmon populations

Quake hits eastern Japan: nuclear plant stable

Buildings may be 'cloaked' from earthquake

Flood-weary suburb keen to vote for change in Senegal polls

Death toll from Madagascar cyclone rises to 16

Soldier killed in fresh clashes in southern Senegal

Sudanese air strike hits S Sudan, breaking pact: army

Nigeria army kills 12 suspected Islamists in flashpoint city

Inter-ethnic fighting displaces 40,000 in Kenya

Neanderthal demise due to many influences, including cultural changes

Why the brain is more reluctant to function as we age

Cutting-edge MRI techniques for studying communication within the brain

Entire genome of extinct human decoded from fossil

Memory Foam Mattress Review

Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement