12 December 2008 17:38 [Source: ICIS news]
TORONTO (ICIS news)--Germany’s chemical industry on Friday welcomed a European Union compromise on greenhouse gas emissions that will grant chemical and other energy-intensive producers free emissions trading rights through 2020.
The compromise seemed to succeed in combining the needs of climate protection and the economy, said Utz Tillmann, general manager of Frankfurt-based chemical producers’ industry group Verband der Chemischen Industrie (VCI).
But Tillman said the EU compromise was no “free ticket” for German chemical producers, which would continue to invest heavily to reach the EU’s 2020 climate protection targets.
Also, said Tillman, the deal addressed only a part of the industry’s concerns over the cost of emissions trading and climate policies.
It still remained unclear to what extent German chemical producers would be compensated for direct increases in electricity costs due to those policies, Tillman said.
VCI was also disappointed that electricity generated from combined heat and power co-generation plants - known in German as Kraftwärmekopplung - was not exempted from having to bid for emissions trading certificates.
Kraftwärmekopplung was a highly efficient process used widely by the chemical industry, VCI said.
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