European plastics to receive extra greenhouse gas allowances

18 September 2009 23:02  [Source: ICIS news]

HOUSTON (ICIS news)--European plastics makers will receive a higher share of free greenhouse gas (GHG) emission allowances than most other industrial sectors, the European Commission said on Friday.

The Commission listed 164 industrial sectors and sub-sectors as exposed to "carbon leakage", the risk that strong international competition might force them to relocate from the EU to countries with less stringent GHG emissions constraints. Industries on the list would receive free credits as compensation.

The list will be reviewed by the European Parliament and Council with final approval by the Commission expected by the end of the year.

Last year, the EU agreed to cut carbon dioxide (CO2) emissions to a fifth below 1990 levels by 2020.

The system, which begins in 2013, seeks to force industries to cut emissions via the Emissions Trading Scheme (ETS), which forces companies to buy permits for the CO2 they emit.

The list is scheduled to apply through 2014, and the actual number of free allowances that industries such as plastics will receive will be decided in 2011.

Other industries that were on the pay-exempt list included textiles, plywood and cast iron producers.

A decision over brick and roof tile manufacturers was delayed.

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By: Ben DuBose
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