Emissions trading biggest threat to growth - VCI

03 July 2008 14:54  [Source: ICIS news]

LONDON (ICIS news)--The largest threat to long-term growth in the German chemicals industry is the European Commission’s emissions trading scheme (ETS), which could cost it up to €2bn annually, according to the president of the German chemical industries association (VCI).

 

“The chemical industry will be faced with immense costs [from the ETS]. As early as 2010, the financial burden for German companies alone will amount to over €1bn ($1.59bn) - and by 2020 this will rise to almost €2bn annually," said Ulrich Lehner.

 

The VCI president said the ETS would create obvious cost advantages to competitors in the US and Asia, while innovative products from the chemicals industry in Europe were essential for reducing emissions in other industries.

 

“Production in Germany and in Europe will become less profitable and investments will be made in other parts of the world. Therefore, we urge the political decision-makers not to put an excessive strain on the industry where ETS is concerned,” said Lehner.

 

The German chemicals industry would increase production by an average of 3% up to the year 2020, he said, adding it would require adequate political conditions and further reform from the federal government. 

 

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

 

The EU ETS is a Europe-wide scheme which aims to reduce CO2 emissions and combat the serious threat posed by climate change.

 

($1 = €0.63)


By: Mark Watts
+44 20 8652 3214



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