NOx & SO2 trading: off the agenda!

In early December 2010, CEMBUREAU was pleased to learn that the European Commission has decided not to continue any further work on the introduction of an Emissions Trading Scheme for NO_x and SO₂ from industrial installations. Although the Commission felt that the consultancy studies had shown that emission trading offers a more cost-effective alternative to BATⁱ-based (Best Available Technique) permitting, they recognised that there were also drawbacks. For example, the introduction of such a trading scheme now would lead to a period of further regulatory uncertainty which, in turn, would hamper investment decisions by operators. They also noted that concerns about local air quality effects would need further study, and the resources needed for that and for the detailed design of any trading proposal would be substantial.

CEMBUREAU is delighted that the Commission has come to this conclusion. Industry, policy makers and NGOs have for some time been stressing the view that NO_x and SO₂ trading would not be smart policy.

More information on this issue, as well as the views of the various stakeholders, can be found here:
http://www.cembureau.eu/topics/emissions/mono-nitrogen-oxides-sulpher-dioxide.

The publication of the final report of the second study, following discussions during the stakeholder meeting held on 14 October 2010, can be downloaded from here: http://circa.europa.eu/Public/irc/env/ippc_rev/library?l=/emissions_trading/final_report_second&vm=detailed&sb=Title