plus update...commission said there was a typo for cement...should be benchmark of 0.766 on page 34 of http://ec.europa.eu/clima/policies/ets/docs/decision_free%20allocation_22%20Oct_en.pdf not 0.776 cheers...comments our way....market not moving today much?
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Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew
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EU Relaxes Carbon Benchmarks for Hot Metals, Cement (Update1)
2010-10-25 12:02:21.157 GMT
(Updates with analyst comment from fourth paragraph.)
By Mathew Carr
Oct. 25 (Bloomberg) -- The European Commission, regulator
of the world's largest emissions program, published benchmark
figures to determine the free allowances given to industries
including metals and cement in the eight years through 2020.
The average amount of allowances that will be allocated to
so-called hot metals factories will be 1.328 metric tons of free
CO2 allowances for each ton of product, 25 percent more than in
an earlier draft, Konrad Hanschmidt, an analyst at Bloomberg New
Energy Finance, said today by e-mail. Grey clinker plants, which
make cement, will receive 0.766 tons of permits per ton of
product, an increase of 8.4 percent compared with the draft.
The European Commission is seeking to introduce the limits
in 2013 to assign the dwindling supply of free emission permits
to industries such as oil refining and metals production. The
commission, the EU regulator, has said it aims to reward the
most-efficient emitters, and its draft paves the way for phasing
out free allowances in the European trading system, the world's
largest carbon market.
"It's likely to result in lower demand in the market
compared with previously released benchmarks," London-based
Hanschmidt said by phone. The level of demand reduction will not
be known until the commission completes its plans for the eight-
year period, the third phase of the program.
The benchmarks for free-of-charge carbon allowances set the
maximum amount of C02 emissions that can be produced to make a
ton of products ranging from glass and bricks to diesel. They
were set by analyzing experience at the most energy-efficient
plants.
The benchmark proposals may not account for industry
production in 2009 and 2010, which were lower production years
because of the recession, Hanschmidt said. A decision to exclude
those years might increase the portion of free allowances in the
phase, he said.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Rob Verdonck, Stephen Cunningham
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
