Smelters in the EU and the Challenge of the Emission Trading Scheme
The majority of scientists believe that the increasing amounts of CO2 emitted into the atmosphere by mankind will have severe impacts on the world’s climate. The Kyoto protocol was one of the first attempts to reduce CO2 emissions all over the world significantly. To enforce the protocol’s intention within the EU, the commission had introduced the so called “Emission Trading Scheme” (ETS). This brought the EU into a leading position regarding the reduction of CO2 emissions. For those parties, who are already affected by the ETS, the emission of CO2 is no longer free of charge. Although the aluminum smelting industry in the EU is exempted from the ETS, it is indirectly — but significantly — affected due to the increasing prices for electrical energy. This paper will give a brief overview about the impacts of ETS and of the national schemes for the competitiveness of the EU aluminum smelters.
KeywordsEmission Trading Scheme Power Price Kyoto Protocol
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- Stern Review: The Economics of Climate Change — published in January 2007 available at: http://www.hm-treasury.gov.uk/independent_reviews/stern_review