16 April 2013 17:54 [Source: ICIS news]
LONDON (ICIS)--Germany’s chemical industry trade group VCI on Tuesday welcomed a vote by the European Parliament not to interfere with the EU's Emissions Trading System (ETS).
A majority of parliamentarians voted earlier on Tuesday against freezing auctions of a portion of the carbon dioxide (CO2) emission quota under the ETS as they felt that this would interfere with the ETS and undermine confidence in the system, the parliament said in a statement.
Freezing auctions – dubbed “backloading” – would have raised the prices of ETS emissions permits, thus further driving up costs for Europe’s industrial producers and harming their international competitiveness.
Utz Tillmann, general manager of Germany’s chemical producers trade group VCI, said that VCI welcomes Tuesday’s vote as good news for Europe as a site for chemical and other industrial production.
Tillmann said that he hoped that the vote would lead the way for future European climate policy, which must have a long-term orientation and take into account Europe’s international competitiveness.
“The European economy is still maneuvering to get out of the crisis and thus needs a reliable regulatory framework," he added.
The backloading proposal will now be referred back to the parliament’s environment committee.
In a separate vote, the parliamentarians agreed on Tuesday to temporarily exclude intercontinental flights from the ETS scheme.
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