Auction all EU ETS permits - German minister

28 June 2007 13:58  [Source: ICIS news]

PARIS (ICIS news)--All emission permits under the EU Emissions Trading Scheme (EU ETS) should be auctioned, German Environment Minister Sigmar Gabriel said on Thursday.

 

Speaking before a debate on the EU ETS between EU environment ministers in Luxembourg, Gabriel said 100% of the permits should be auctioned in the future.

 

Until now, most of the emissions permits have been allocated free of charge.

 

Such a decision would please environmentalists, who believe auctioning would ensure that all installations covered by the scheme are subject to the same rules and create a truer price for carbon credits than at present.

 

The chemicals industry was less happy with the proposal.

 

The European Chemical Industry Council (Cefic) has said that it rejects the auctioning of allowances. “It would add unpredictable costs, affecting our global competitive position, and would threaten new entrants and investments across the EU,” said the industry body.

 

Gabriel also said the EU ETS must be managed like any other financial market with clear standardised rules and little interference from national governments.

 

Environment ministers will review the scheme later today.  

 

By: Philippa Jones
+44 20 8652 3214

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