Posts Tagged ‘Poland’

Emissions benchmarks face opposition in Europe’s Parliament

The benchmarks which will be used to determine free allocations of carbon credits from 2013 onwards have been a cause of much debate in the steel industry. An attempt is underway to challenge the benchmarks at the European Parliament. However, the benchmarks may have sufficient support to thwart the efforts of energy-intensive industries.

SBB 15 February The steel sector is one of three mentioned in a draft resolution which questions the legality of the European Commission’s proposed greenhouse gas emission benchmarks, Steel Business briefing understands. The draft, which has been submitted to the environment committee, could force the commission to make a new set of proposals.

The use of blast furnace waste gases is one of the issues raised by the resolution; the motion argues that the commission should provide free carbon credits for 100% of the emissions saved by this process. The proposed benchmarks, as they stand, would only compensate for some of these emissions. Other issues in the lime and dolomite, and refining, petrochemical and fertiliser sectors are also being argued.

Six members of the European Parliament have signed their names to the draft. Five were from the environment committee: Philippe Juvin of France, Pilar Ayuso of Spain, Jolanta Emilia Hibner of Poland, Radvilé Morkunaite-Mikuleniene of Lithuania, Theodoros Skylakakis of Greece and Boguslaw Sonik of Poland. In addition, Konrad Szymansky of Poland, from the Industry, Research and Energy committee also added his name.

The draft will be voted on by the environment committee in mid-March and, if approved, by the European Parliament in April.

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Poland’s steelmakers may face CO2 allowance deficit

SBB 22 April Poland’s steelmakers may be forced to buy extra carbon dioxide emissions allowances if the economic recovery continues and results in steelmakers increasing output, Poland’s Institute for Ferrous Metallurgy (IMZ) tells Steel Business Briefing.

Earlier this week, the European Commission approved the new quota for Poland’s CO2 allowances for 2008-2012, setting it at 208.5m tonnes/year. Wojciech Szulc, manager of IMZ’s business and process consulting division, argues this could prove too little.

“The Polish government wanted the level of emissions allowances to be higher by a third,” says Szulc. “The Polish side reasoned that this would be the requirement for Polish firms, and at a lower level of emissions limits they would be forced to buy extra allowances…which would cause an increase in production costs,” he continues.

If the economic recovery strengthens, demand for emissions units is expected to intensify, meaning that allowances would increase in cost and could cause Polish steelmakers to become less competitive.

“If a drop in steel production occurs, then there will not be a larger problem, because the number of allocated limits would be enough,” says Szulc. “However, if the steel industry comes out of the crisis, we may find that steelmakers are forced to buy extra CO2 allowances in order to function normally,” he adds.

Another Polish steel industry source argues the picture is not so black and white. “If more electric arc furnace-based production occurs, then the structure of CO2 emissions will change,” he tells SBB. “Blast furnaces emit 5-6 times more than EAFs,” he adds.