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ECJ: Steel industry not unfairly treated

17 December 2008

The carbon-intensive steelmaking industry is not being discriminated against in an unjustified way by being obliged to participate in the EU Emissions Trading Scheme, the EU's highest court has said.

Responding to action taken by steelmaker Arcelor in 2005, the European Court of Justice (ECJ) ruled that legislators had been justified in not including chemicals, plastics and non-ferrous metal industries in the scheme.

Participating industries and installations in the ETS are expected to have sufficient carbon allowances to cover their carbon emissions, having to buy or trade to ensure they have met requirements.

Arcelor, now part of Mittal, had claimed that not including other sectors meant that the steel industry was not receiving equal treatment.

However, the ECJ said: "The difference in treatment caused by the exclusion of the chemical and non-ferrous metal sectors from the scope of the directive may be regarded as justified."

It approved of a step-by-step approach and noted that including the other sectors would have increased the administrative burden on the scheme.

EU governments recently agreed to generate 20 per cent of energy from renewable sources.

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Author: Administrator User