EU ETS: 2011 cement update
Cashing in on the lucrative EU emissions trading scheme has been a welcome safety net to many European cement producers during recent years of recession. However, the changes that will occur in Phase III of the scheme may see a drop in CO2 permit allocations by up to 15 per cent.
Prices for permits for carbon dioxide (CO2) emission dropped by around 60 per cent in the 12 months up to mid-2012, at one stage passing below €6/t. This is well below the amount for which cement makers had earlier sold surplus allowances. The EU is now in its fifth and final year of the second phase of the ETS, and its challenges and successes are becoming more evident as detailed regulations for Phase III are developed.