The European Steel Association (EUROFER) has criticized the European Parliament for approving the European Commission's proposal to temporarily remove 900 million CO2 emissions allowances from the market.
According to the European Parliament's decision, 900 million carbon emission allowances will be taken out of the market with the aim of increasing prices for the certificates traded within the EU Emissions Trading Scheme (ETS).
"The decision will needlessly increase energy cost for the European steel industry and the industry in general at a time of crisis," said Gordon Moffat, director general of EUROFER, adding that withholding carbon allowances is not necessary to reach the ETS targets. Today's decision represents unnecessary interference in a market-based system, he commented.
As SteelOrbis previously reported, the European Parliament's Environment, Public Health and Food Safety (ENVI) Committee has reviewed the European Commission's proposal to temporarily remove 900 million CO2 emissions allowances from the market, after the European Parliament refused to accept the proposal as it was in April.
