InterviewEurope carbon tax may stimulate chems tech investment

26 August 2011 12:07  [Source: ICIS news]

By Will Beacham

LONDON (ICIS)--Chemical companies operating in Europe may soon start planning to add extra carbon dioxide (CO2) reduction technology to offset the cost of adhering to the next phase of the Emissions Trading System (ETS), trade group Cefic said on Friday.

From 2012, chemical plant owners across Europe will know the detail of exactly how many Emissions Trading Permits they will require to continue operating once the next phase of the ETS begins in 2013, according to Pierre de Kettenis, Cefic’s executive director for petrochemistry.

Once chemical companies know the likely cost of buying permits, operators will be able to work out if the cost of extra investment in new technology will offset the cost of buying fewer permits.

Under the next phase of ETS, the top 10% most efficient chemical plants will be exempt from the need to purchase permits. Operators of all other facilities will need to purchase permits if they want to continue operating.

According to Kettenis, national authorities responsible for policing ETS are currently visiting plants and making allocation plans for permits.

He added: “Companies can’t yet consolidate exactly what they need to spend on permits. But by the end of 2011 the information will be known by every company. I’d anticipate that during 2012 companies will be planning that during debottlenecking procedures they may add CO2 reduction technology.”

He added: “This should also stimulate the engineering sector to develop more cost-effective CO2 reduction technology.”

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