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Energy-intensive industry calls for free CO2 permits

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World Cement,

Reuters are reporting that a group of 15 European energy-intensive industry associations have called for the European Parliament to reject a tiered approach to handing out free EU carbon permits to industry and to keep full free allocation.

Many energy-intensive industries argue that higher costs for carbon in Europe raises the risk of businesses moving to regions where pollution regulations are less strict.

The group includes the European Cement Association, the Confederation of European Paper Industries, the European Precious Metals Federation, the European Copper Institute, the European Chemical Industry Council and the International Zinc Association.

In April, Europe's highest court ruled that energy-intensive industries had received too many carbon permits under the EU's Emissions Trading System (ETS), which charges power plants and factories for every tonne of carbon dioxide (CO2) they emit.

It also said the European Commission's calculation for handing the free permits out was flawed and gave the EU executive 10 months to review the policy.

Adapted from press release by Joseph Green

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