Economic analysis of NOx/SO2 trading published

On 14 October in Brussels, CEMBUREAU participated in the stakeholder meeting on the Entec’s 2nd study concerning wider economic aspects of the possible development of an EU-wide NO_x and SO₂ emission trading scheme. The consultants presented the results of the economic modelling, which, not surprisingly, are overall favourable to the implementation of a trading scheme. However, the trading scenarios and the assumptions to the modelling remain very controversial to industry stakeholders; the modelling is fraught with questionable assumptions which undermine its credibility.

The European Commission made it clear that the way forward now is not whether an EU-wide NO_x and SO₂ emission trading scheme should be developed, but rather how to proceed with the introduction of such a trading scheme.

All indications show that the present policy works. Thus CEMBUREAU does not see the need to introduce a new mechanism which would impinge on existing regulation. In comparison, such a trading system in other countries has been added to virgin territory. In Europe, emissions are already overregulated.