Carbon trading – state of play
Low prices and generous free allowances have meant that the cement and lime industry has been relatively unfazed by the European Emissions Trading Scheme (EU ETS). Is this about to change? By Philipp Ruf, ICIS Tschach Solutions, UK.
Go around the table at the board meeting of many cement and lime producers, and ask about their strategy for dealing with the European Emissions Trading Scheme (EU ETS). You’ll likely encounter a statement about the EU ETS being solely a matter of compliance. In the last couple of years, carbon prices have been low – too low to take much notice of – and in an effort to avoid industry relocating outside the EU, the EU has been allocating industry a generous amount of free allowances. It is been easy to adopt the motto of ‘just comply’ – tick the box and pay the small cost to stay compliant. Carbon price risk has rarely amounted to more than a bullet-point on the boardroom agenda. However, this may be about to change.