(BN) EU May Limit UN Credits From Steel and Cement, RWE Trader Says


EU May Limit UN Credits From Steel and Cement, RWE Trader Says
2010-11-10 10:39:14.813 GMT

By Mathew Carr
Nov. 10 (Bloomberg) -- The European Union may limit United
Nations credits on investments seen as "subsidizing" rivals
in the steel and cement industries, a trader at RWE AG said.
The EU, which runs the world's biggest cap-and-trade
program, has said it may ban industrial-gas offsets from the UN
system. It may extend that ban to steel and cement factories in
developing-nations because they compete with EU-based companies,
said Bjorn Struck, senior emissions manager at the Geneva-based
trading unit of RWE, Germany's second-biggest utility.
"By buying Certified Emission Reductions, you are actually
subsidizing industry," Struck told the Climate Finance 2010
conference today in London. "I expect those will be next," he
said, referring to steel and cement.
Proposed restrictions on UN credits linked to industrial
gases probably wouldn't undermine prices because the market is
oversupplied, Struck said.
"There will be enough Certified Emission Reductions
available for meeting the absorption capacity of the EU
emissions trading system," he said. "I don't think the
restrictions will affect the EU ETS a lot."

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--Editor: Mike Anderson.

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