Carbon Trust: EU's emissions trading will not damage UK refining industry's competitiveness

By OGJ editors
HOUSTON, July 16 -- The European Union's emissions trading scheme (EU ETS) will not damage the competitiveness of UK refining and fuel industries' competitiveness, said a report by the Carbon Trust.

The scheme is slated to commence Jan. 1, 2005, as one of the policies being introduced across Europe to tackle emissions of carbon dioxide and other greenhouse gases.

"Our overall conclusion is that the EU ETS is unlikely to reduce the profitability of most industrial sectors, providing that it is implemented in roughly equivalent ways across different EU countries, and that the price rises are not so large as to make non-EU imports profitable on a large scale," the report said.

The UK government established the Carbon Trust as an independent company to work with UK businesses and the public to cut carbon emissions.

Michael Grubb, Carbon Trust policy director, said that industry across Europe, including the UK, had concerns that costs associated with the EU ETS could cause businesses to lose out to global competition.

The Engineering Employers Federation has said that the scheme could lead to rises in wholesale electricity prices of 80% by 2010, and the Chemical Industries Association has said the scheme could contribute to higher manufacturing costs. Both the EEF and CIA are based in London.

The Carbon Trust study examined how the EU ETS would affect five different UK sector: electricity, cement manufacturing, paper (newsprint), steel manufacturing, and aluminum (smelting).

The analysis used economic modeling to calculate price rises across a range of carbon price scenarios representing phases of the EU ETS development over time.

"Despite being the second largest emitter after the electricity sector, this study shows that the UK refining and fuels industries have little to fear from the EU ETS, and that some companies may even benefit. This is largely driven by the fact that these sectors consume very little electricity from the grid," Grubb said.

He concluded that the study provides "grounds for cautious optimism about the competitiveness implications of the EU ETS." The study found that three of the five sectors have the potential to maintain or increase profits. Aluminum smelting was found to be clearly disadvantaged if exposed to electricity price rises and the impact on steel could be positive or negative.

Related Articles

EPA delays proposal to regulate methane emissions until 2015

12/19/2014 The US Environmental Protection Agency is delaying plans to issue proposals to regulate methane emissions from oil and gas operations until 2015, O...

BLM starts process to consider new Nevada lease nominations

12/19/2014 The US Bureau of Land Management’s Battle Mountain, Nev., field office is seeking public comment on 197 parcels of public land, totaling 415,921 ac...

California Bay Area advances plan for enhanced refinery regulations

12/19/2014 California’s Bay Area Air Quality Management District (BAAQMD), the public agency responsible for regulating stationary sources of air pollution in...

IEA finds US energy policy improved in latest in-depth review

12/19/2014 US energy policies have come into sharper focus in the last six years, the International Energy Agency said in its latest periodic review. It speci...

Jewell names Maryland energy administrator BOEM’s new director

12/18/2014 US Interior Sec. Sally Jewell appointed Abigail Ross Hopper, who currently directs the Maryland Energy Administration, as the new director of the U...

Moody’s: Mid-term elections dim federal fracing regulation prospects

12/18/2014 Results of 2014’s congressional elections have reduced the prospect of the federal government enacting its own hydraulic fracturing regulations, Mo...

Thirty-one House Democrats ask Jewell to bar leasing in Arctic Ocean

12/18/2014 US Rep. Jared Huffman (D-Calif.) and 30 other House Democrats urged US Interior Sec. Sally Jewell to reject the second supplemental environmental i...

Obama makes Alaska’s Bristol Bay off-limits for oil, gas activity

12/17/2014 US President Barack Obama placed Bristol Bay off-limits for future oil and gas leasing, extending a temporary withdrawal he imposed in 2010 that wa...

New York state moves to ban hydraulic fracturing

12/17/2014 High-volume hydraulic fracturing will be banned in the state of New York, Gov. Andrew Cuomo’s administration announced Dec. 17, citing health risks...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected