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EU Paper Indus: Needs More CO2 Trade Clarity,Auction Concerns

EU Paper Indus: Needs More CO2 Trade Clarity,Auction Concerns
Παρ, 25 Ιανουαρίου 2008 - 03:10
The Confederation of European Paper Industries Thursday called for more clarity from the European Commission over plans for the European Union Emissions Trading Scheme post 2013 and said that the introduction of large-scale auctioning was a cause for concern.
"In the European Commission's proposal for the future of the E.U. ETS instead of clarifying the future trading system, it seems to have brought new discussion and challenges. Not all definitions are clear, boundaries differ and decisions are delayed until 2010," CEPI said in a statement.

Wednesday, the commission said it would introduce a stricter cap for E.U. emissions and more auctioning of emissions credits for the 2013-20 period. It said that power producers would have to buy 100% of their carbon allowances from auctions, when previously they were given the majority of these carbon credits for free and that overall about 60% of the total number of allowances will be auctioned in 2013, with this proportion increasing in later years.

The commission said that some sectors, which unlike the power sector can't pass on their costs to customers without being placed at a competitive disadvantage to non-E.U. industry, will continue to be given at least some of their allowances for free. It said it would determine which energy-intensive industries would receive some or all of their carbon credits for free in 2010.

"It is essential that the pulp and paper industry is recognized as an energy intensive industry immediately and the proposal to decide only in 2010 which sectors will still receive partial free allocation of CO2 credits is much too late," CEPI Managing Director Teresa Presas said.

She added: "The sector can not pass these extra costs on to final consumers, as it does not set world market prices. Manufacturing costs are already high."

CEPI also said the introduction of large-scale auctioning was a cause for concern and that it was unnecessary and had no added environmental effect.

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