German industries unite against EU emissions plan

01 October 2008 15:56  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s energy-intensive industrial producers warned on Wednesday of a huge €7.2bn ($10.1bn) cost burden by 2020, loss of competitiveness and even de-industrialisation if the European Union’s Emission Trading Scheme (ETS) goes into law as currently proposed.

 

“If the European Commission’s ETS proposal passes without changes, the de-industrialisation of Germany will be inevitable,” said Ulrich Lehner, president of German chemical industry group Verband der Chemischen Industrie (VCI).

 

He spoke at a press event VCI held jointly with major German industry groups representing producers in the glass, paper, metal, steel and building materials sectors.

 

By 2013 producers in these industries would already be facing €4bn in costs from the ETS, they said.

 

For the chemical industry alone the cost is estimated at €1bn by 2013 and €2bn by 2020.

 

The groups called on the EU to grant them free emissions certificates and to ensure that they would be compensated for higher electricity and power costs.

 

Otherwise energy-intensive producers would migrate to regions without such comparable climate laws and regulations, to the detriment of global climate protection.

 

German producers could not just raise their prices and pass on the costs to customers as they were dealing in international markets, Lehner said.

 

As one example Lehner pointed to ethylene/polyethylene.

 

Polyethylene was traded globally in very competitive markets, which meant that a Germany-based producer would be saddled with the additional costs, forcing him to close down his cracker and stop production sooner or later, he said.

 

Hans Jurgen Kerkhoff, president of Wirtschaftsvereinigung Stahl which represents steel producers, added:  “What is at stake is the existence of energy-intensive industries in Europe.”

 

“We are afraid that the European Parliament does not fully appreciate the realities we are facing in our industries,” he added.

 

Germany’s energy-intensive industries managed to reduce their carbon dioxide emissions by 20% from 1990 to 2006 even though production rose 28%, the groups said.

 

($1 = €0.71)

 

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