New EC emissions trading scheme concerns Rhodia

28 February 2008 15:41  [Source: ICIS news]

PARIS (ICIS news)--New European Commission (EC) proposals that will force companies to buy the right to pollute from 2012 rather than benefit from free allocations were causing concern for firms like Rhodia, the French company said on Thursday.


Companies were already struggling to make plans for investment beyond 2012 because of the uncertainty about whether they would be forced to buy emissions rights and urged the EC to “make a swift decision” on whether this would in fact be the case, said said Rhodia's CEO Jean-Pierre Clamadieu.


The new proposals from the EC needed to be clarified, he added.


“This kind of system is fine for companies such as [French electricity group] EDF, which have no international competition, but for companies in the steel, cement, aluminium and chemicals sectors, for example, there is much more competition from the rest of the world,” he said.


By far the most profitable Rhodia division in 2007 was energy services - essentially a carbon credit business - which Clamadieu said was now well and truly established as a key driver of growth.


He did not break out the figures from the energy services business but stressed that while it had certainly helped Rhodia’s 2007 performance, the company’s organic growth had been ahead of all its European competitors even without the carbon credit operations.


Carbon dioxide (CO2) emissions from petrochemicals, ammonia and aluminium will be included in the EU emissions trading scheme (EU ETS) post-2013, following an EC announcement in January.

By: Chris Jones
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly