05 APR 2011
By Ewa Krukowska | Bloomberg
The association of European steel producers Eurofer said it will sue the European Union over the design of a method to allocate free carbon-dioxide permits in the 27-nation bloc’s emissions trading system after 2012.
The carbon-efficiency benchmarks for distributing a dwindling supply of free allowances to the steel industry in the next phase of the EU emissions program infringe the law and will result in additional costs to producers of around 5 billion euros ($7.1 billion), according to Eurofer, whose members include the world’s largest steelmaker ArcelorMittal (MT) and Germany’s largest steel producer ThyssenKrupp AG. (TKA)
“As a consequence the European steel industry, through Eurofer, has instructed its lawyers to initiate a request for annulment” of the decision on steel benchmarks drafted by the European Commission, the EU’s regulatory arm, the group said.
The draft regulation on allocating free permits in the next eight-year phase of the region’s cap-and-trade program through 2020 is on track for final approval in the coming weeks. The EU, which has given away the majority of emissions permits since it started the program, will sell the majority of them in the next phase from 2013.
Europe should consider measures such as taxes on some imports to reflect the costs of emissions and improve the competitiveness of companies within its borders, according to Omar Abbosh, managing director at Accenture Plc (ACN), the world’s second-largest technology-consulting company.
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