11 November 2008 16:55 [Source: ICIS news]
TORONTO (ICIS news)--European trading in “green certificates” to promote power from renewable energy projects would lead to higher electricity costs for German chemical producers and thus harm their competitiveness, industry trade group VCI said on Tuesday.
Citing the industry's experience with carbon dioxide (CO) trading, trading in green certificates would open up the door to market speculators and lead to yet another increase in electricity costs for energy-intensive producers, said Utz Tillman, general manager of Verband der Chemischen Industrie (VCI).
Tillman was speaking with reference to negotiations between EU institutions to promote renewable electricity production. Parliament and Commission favoured introducing trade in green certificates, he said.
Each increase of one cent per kilowatt hour of electricity translated into an additional cost burden of €400m/year ($513m/year) for German chemical producers, according to VCI’s analysis.
For producers of basic chemicals, energy accounted for 50% of production costs, the trade group added.
However, generally VCI welcomed moves to help make the expansion of renewable energies in the EU more flexible, it said.
($1 = €0.78)
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