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EU ministers approve granting of free carbon allowances to steel sectors till 2030

Steel News - Published on Fri, 12 Apr 2019

Image Source: European Commission
Metal Bulletin reported that the European Union Council of Ministers has accepted a proposal that steel, iron and non-ferrous metal producers should be allocated free carbon allowances under the EU emissions trading system until 2030. The decision, backing a proposal from the European Commission, has been made because of concern that steel and other metal production could move outside the EU if the industry was forced to buy such allocations, which is what is generally required.

The list of sectors qualifying for free emission allowances also covers the mining and processing of iron and non ferrous metal ores, as well as the production of ferro-alloys; manufacturing of steel tubes, pipes, hollow profiles and related fittings; cold drawing of bars etc

The EU ETS was launched in 2005 to promote the reduction of greenhouse gas emissions in a cost-effective and economically efficient way. It restricts the volume of greenhouse gases that can be emitted by energy-intensive industry, power producers and airlines. Emission allowances are capped at a level set by the EU, and companies either receive or buy individual allowances. The cap is reduced over time so that the amount of emissions gradually decreases.

PHASE 1 (2005-2007): Power stations and other combustion installations with >20MW thermal rated input (except hazardous or municipal waste installations), industry (various thresholds) including oil refineries, coke ovens, iron and steel plants, as well as production of cement, glass, lime, bricks, ceramics, pulp, paper, and board.

PHASE 2 (2008-2012): Aviation was introduced in 2012 (>10,000 tCO2/year for commercial aviation; >1,000 tCO2/year for non-commercial aviation since 2013) (see below). Nitrous oxide emissions from the production of nitric acid were included by a number of countries. The EU ETS also expanded to include Iceland, Liechtenstein, and Norway.

PHASE 3 (2013-2020): Carbon Capture and Storage installations, production of petrochemicals, ammonia, nonferrous and ferrous metals, gypsum, aluminum, as well as nitric, adipic, and glyoxylic acid (various thresholds) were introduced.

PHASE 4 (2021-2030): No changes to the scope are envisaged for phase 4

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Posted By : Sanju Moirangthem on Fri, 12 Apr 2019
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