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Company News, 2002-11-11, 01:00 AM

ThyssenKrupp Steel: Key points of a Europe-wide emissions trading system

Germany will cease to be an attractive location for primary industries such as chemicals, energy, aluminum, cement or steel if the proposed directive of the EU Commission on CO2 emissions trading is implemented. "The EU proposal as discussed would nullify the major efforts which the German steel industry has undertaken on a voluntary basis since 1990," says Dr. Ulrich Middelmann, Executive Board Chairman of ThyssenKrupp Steel AG. At ThyssenKrupp Steel large numbers of jobs in the primary stages of steelmaking could be at risk, directly or indirectly.

Dr. Middelmann is clear on one point: "ThyssenKrupp Steel together with the German steel industry supports the Kyoto agreements to reduce greenhouse gases. The steel industry has no need to hide". The results achieved on a voluntary basis in reducing CO2-emissions are exemplary.

It must be possible for the instrument of voluntary self-restraint, which has worked extremely well so far, to be continued. ThyssenKrupp Steel AG therefore supports the demand to allow national self-restraint to be continued through a sectoral opt-out clause in the directive. As a secondary instrument a legally regulated pool model could be used. The pool should comprise all affected sectors, be administered close to industry and be based on the principle of solidarity. Detailed proposals on this have already been put forward by the trade unions and industry.

Of paramount economic importance is the still unresolved question of the allocation of emissions permits. "Any auctioning of permits will represent an added cost burden for our companies and act like a tax on production," says Dr. Middelmann. ThyssenKrupp Steel therefore demands a clear commitment by the EU to the cost-free provision of permits.

It is also unclear how the outstanding past achievements of German industry will be taken into account in a possible emissions trading system. There is still no clear commitment as regards the 1990 baseline demanded by industry. There is also no separate consideration for the CO2 arising during steelmaking as a result of metallurgical reactions. Carbon is not substitutable in commercial steel production.

Climate protection is a global task. That is why the international agreements provide for global instruments to reduce greenhouse gas emissions. ThyssenKrupp Steel urges the EU to allow these instruments to be used without restrictions also within the framework of emissions trading. This is the only economically and ecologically effective way forward.

Contact:

ThyssenKrupp Steel AG

Erwin Schneider
Tel.: +49 203 / 52 2 56 90
Fax: +49 203 / 52 2 57 07
e-mail: erwin.schneider@tks.thyssenkrupp.com

Dietmar Stamm
Tel.: +49 203 / 52 2 62 67
Fax: +49 203 / 52 2 57 07
e-mail: dietmar.stamm@tks.thyssenkrupp.com

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