19 June 2013 17:13 [Source: ICIS news]
LONDON (ICIS)--Germany’s chemical industry trade association VCI and other groups representing German energy-intensive industries on Wednesday called for an "open debate" about the future of Europe’s climate and industrial policies.
The groups issued the call after the European Parliament’s environmental committee earlier on Wednesday voted for a second time to freeze the number of available carbon dioxide (CO2) emission allowances auctioned on Europe’s Emissions Trading System (ETS).
A freeze - known as "backloading" - would raise the prices of the permits, thus further driving up costs for European chemicals and other industrial producers and harming their international competitiveness.
Utz Tillmann, general manager of Frankfurt-based VCI, said that backloading was an "inadmissible intervention" in the ETS market, which was working well.
"We are looking to the [European] Parliament to prevent a wrong climate policy decision that will harm Europe’s industry and do damage to the reputation of the ETS," he said.
Europe's industrial producers needed reliable and sustainable decisions, instead of "hectic changes of the rules of the game," Tillmann added.
A plenary session of the parliament is due to vote on the issue again next month, after the parliament in April narrowly voted against backloading.
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