Emissions trading will harm competitiveness - BASF

30 October 2008 14:36  [Source: ICIS news]

LONDON (ICIS news)--The EU’s plans to introduce buying of emissions rights under the EU emissions trading scheme (ETS) after 2012 could seriously harm the competitiveness of the European chemicals industry, BASF's CEO said on Thursday.

“I would like to see an end to the systematic attempts to de-industrialise Europe,” said Jurgen Hambrecht in a conference call following the release of the company’s third quarter results.

He said the months ahead were likely to bring many extraordinary challenges to the company’s business and hardly any positive impulses.

In addition to volatile raw material costs, Hambrecht said he saw risks in a further economic downswing.

“What we can all do without are additional burdens that will weaken our position in the global competition,” he said.

“I am therefore extremely worried about the EU’s current plans regarding emissions trading,” Hambrecht added.

He said that if implemented, they would result in higher additional costs, even for companies such as BASF that use the best possible technology globally in terms of climate protection.

“We therefore call on politicians to ensure predominantly free allocation of emission rights instead of unilaterally worsening the competitiveness of energy intensive sectors of manufacturing such as the chemicals industry,” said Hambrecht.

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By: Hilde Ovrebekk
+44 20 8652 3214

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