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16 Dec 2008 05:12:55

Steelmakers' ETS inclusion justified



Steelmakers' ETS inclusion justified
Steelmakers are not discriminated against by the EU Emissions Trading Scheme (ETS), the European Court of Justice (ECJ) has said.

The ECJ announced its ruling in a case filed by steelmaker Arcelor in 2005, which alleged the industry was being singled out because other sectors such as chemical and other metals were not included in the ETS.

Under the ETS, facilities are given, or have to bid for, credits which entitle them to a certain amount of carbon emissions. If they exceed their limit they have to purchase or trade for more credits.

The steel company had brought action against the French law which transposed EU legislation, claiming it breached the principle of equal treatment.

However, the ECJ said: "The difference in treatment caused by the exclusion of the chemical and non-ferrous metal sectors from the scope of the directive may be regarded as justified."

It added that including the disputed sectors in the ETS would have increased the administrative burden on the system.

The court gave its support for a step-by-step approach.

At a recent meeting of EU governments, changes were made to the ETS for the next round.

While some had argued to auction all credits, heavy emitting countries secured a concession for some industries to be allocated credits for free.


http://curia.europa.eu/en/actu/communiques/cp08/aff/cp080...


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