Bloomberg News reports today on the impact of recent regulatory decisions in the EU carbon market on steelmakers:
A series of delays in the European Union carbon market, the world’s largest by traded volume, is hampering business planning, according to a lobby group in Brussels representing steelmakers. EU factories and power stations will be able to exchange United Nations carbon offsets for EU permits from February next year, about 13 months later than indicated by the European Commission last year. The regulator is seeking information allowing it to determine the eligibility of some credits, it said in a Sept. 16 statement. “We are not happy with this delay,” Axel Eggert, a spokesman for Eurofer, the steel industry group representing companies from ArcelorMittal (MT) SA to Tata Steel Ltd. (TATA), said yesterday by phone. “The commission is poorly implementing the directive,” he said, citing a six-month delay in a decision made Sept. 5 on the volume of free permits handed out.
“These unforeseeable and unpredictable regulatory processes are in fact further eroding the level of confidence that investors have in the market,” Daniel Rossetto, managing director of Climate Mundial Ltd. in London, said today by phone. “This is a shame because these markets really do work.”
To read the full article, click here.