EU emissions trading will hit coal-reliant CEE chemicals industry
The EU's Emissions Trading System is likely to put the chemical industry in central and eastern Europe under severe pressure and cause widespread shut downs. The third phase of the ETS kicks into action in 2013 and is based on a benchmarking system.
The most efficient 10% of chemical producers will be 100% exempt from having to pay for C02 emissions. The other 90% will pay more, the less efficiently they produce chemicals. CEE producers using coal as a feedstock or for power generation will pay a heavy price. Contacts at Europe's chemical trade association, Cefic, pointed this issue out to me in a call on issues affecting the chemical industry in Europe.