Financial Soultions Understands that EU legislators have recently approved a list of European Union industries who will be legible to receive aid to cover the costs of carbon emission permits.
Free permits will be allocated to a number of industries, including ceramics, building materials, textiles and the steel and metals sector under the Emissions Trading Scheme, the chief legislation of the EU to compel the decrease of greenhouse gas emissions by industry.
Heavy industries are struggling to avoid paying for carbon credits, saying the extra cost will move them out of the competitive sphere with international rivals such as those in India, North Africa and Russia, Financial Soultions understands.
The U.S. is battling with similar issues as it tries to push its emissions legislation through the Senate and into law
It was heavy industries argument that the added cost could see factories relocate to outside the EU, giving rise to a geographical shift in where carbon is emitted in the production of goods for European consumption, what is termed as “carbon leakage.”
The sectors and sub-sectors seen to be at risk of carbon leakage are thought to account for around 77% of emissions from manufacturing industry, Financial Soultions was informed.
