Germany: Industry climate opt-out threatens EU policy

Date: 23 Sep 2008

Campaigners have attacked the decision of the German government to support a far-reaching exemption for industry from new rules on carbon emissions permits on the grounds of competitiveness.

According to the groups, the German position will open the door to a wave of similar objections from other states aiming to support their own key industries. Poland has already argued that its power companies will be disadvantaged by the move, and Italy has argued for free permits for certain sectors.

Germany's move came after the European Parliament's industry committee voted for a mandatory auction of carbon permits between 2013 and 2020 to replace the current system, which involves free distribution of the permits. The proposal still has to be ratified by member states.

It argued that highly energy-intensive industries, such as steel, would already suffer higher energy costs as a result of the impact of carbon permits on the power producers and they should receive an exemption provided they used best available technology to reduce emissions.

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