EU Greenhouse Gas Tax Pushed Later

Europe’s heavy industries were happy to hear on Wednesday that the date when they will have to start paying for their greenhouse gas emissions was pushed later.
The industries have three years to broker a deal with the European Commission as they EU has put back to 2011 a decision on which industries should pay most under the greenhouse gas emissions trading scheme.
José Manuel Barroso, president of the Commission, said: “We all know that there are sectors where the cost of cutting emissions could have a real impact on their competitiveness against companies in countries which do nothing. There is no point in Europe being tough if it just means production shifting to countries allowing a free-for-all on emissions.”
Power utilities will be hit hardest from 2013.  In 2013, they will have to pay for permits to produce carbon under the emissions trading scheme. Aluminium producers and chemicals companies now knew that they would be included in the European Union’s emissions trading scheme for the first time from 2012.
Along with industries such as steel-making, cement, paper and glass, however, they will not have to pay for their emissions permits until after 2013.  At that time, auctioning of permits will be phased in with a view to full auctioning by 2020.