LONDON, June 25, 2019 /PRNewswire/ -- EU's flagship
climate change policy, the Emissions Trading Scheme could
fundamentally alter the economics of metals production in
Europe.
The European Union is forging ahead on its commitments on
climate change under the Paris Accord. The EU pledge to reduce
greenhouse gas emissions by 20% by 2020 and 40% by 2030 from 1990
levels can only be achieved with further policy commitments. These
policies are likely to have important impacts on metals and
fertiliser value chains; the complexity of the rules means that
some plants will be affected more than others.
The EU ETS will change, potentially fundamentally, the economics
of metals production in Europe.
The value of these allowances (the carbon price) has spiralled,
rising from €4.40/t in Jan 2013 to
around €25/t in June 2019. This
reflects recent reforms to the policy including the introduction of
the "Market Stability Reserve" in Jan
2019; And further reinforcements are anticipated as part of
Phase IV of the scheme, beginning in 2021.
In this Insight, one in a series on the EU's emissions trading
scheme, CRU consultant Ben Jones,
explains why we believe downstream European producers need to
factor in higher emissions allowance prices in the long term.
Read the full story:
https://www.crugroup.com/knowledge-and-insights/spotlights/2019/european-producers-must-adapt-to-high-ets-prices-as-a-new-normal/
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