German chems press EU on emissions trading plan

26 September 2008 16:58  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s top chemicals industry group warned again on Friday of the impacts of the proposed EU emissions trading scheme (ETS) on chemical producers and put forward demands for three key changes to the plan.

 

First, chemical producers insisted on being allocated free emissions trading certificates for their plants and power generation units, Ulrich Lehner, president of Verband der Chemischen Industrie (VCI) said in a speech at VCI’s members’ assembly in Hamburg.

 

The industry also needed relief for higher electricity costs which would rise sharply in the wake of the ETS, he said.

 

Finally, Lehner called on lawmakers to decide promptly on long-term sustainable measures that would help energy-intensive industries.

 

In its current form, the ETS threatened chemicals producers on many fronts, Lehner said, adding that Europe would face deindustrialisation if no changes were made.

 

He reiterated VCI’s estimates that the chemicals industry would face additional "unbearable" annual costs of €1bn by 2013 from the ETS, and €2bn by 2020 if the EU’s plan was implemented as currently proposed.

 

The majority of chemicals producers were unlikely to be able to pass through the additional costs to customers, Lehner said.

 

“As a result, Europe will no longer be a competitive location for energy-intensive products and processes,” he said. “We will be losing market share to other regions in the world.”

 

The industry needed quick and reliable decisions on ETS so that it can properly assess the costs and burdens it faces in making investment decisions in Europe through 2020 and beyond, he said.

 

Meanwhile, experts at VCI and European chemical industry association Cefic were working on proposals to show lawmakers alternative, less costly ways of reaching climate change objectives.

 

The industry would only have a chance if it put forward constructive alternative solutions, Lehner said.

 

The environmental committee of the EU Parliament was due to vote on changes and reforms to the ETS on 7 October, he added.

 

Lehner also called on Germany’s government to reform, or even completely scrap, inheritance taxation to make sure that family-owned chemical firms were not unduly burdened when companies are passed to heirs.

 

To discuss issues facing the chemical industry go to ICIS connect

By: Stefan Baumgarten
+1 713 525 2653

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