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EU mills selling carbon permits as production falls
April 27, 2009 - 10:41 GMT
Location:
London
KEYWORDS:
carbon permits
,
steelmakers
,
EU Commission
European steel producers are selling their allocated carbon permits from the EU in order to generate liquidity during the downturn, carbon analysts told MB.
“Steelmakers are using the EU Emissions Trading Scheme (EUTS) as a cash cow,” one analyst said. “The steel sector has received more permits than it should have.”
Nevertheless the steelmaker’s actions are perfectly legitimate as the EU carbon market is a free one, carbon traders said.
“A producer can do whatever it likes with its allocated carbon permits,” one trader said. “However, if they sell too many of them now it is very likely they’ll have to buy them back at a much higher...
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Euromoney Institutional Investor PLC.
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