Heidelberg attacks EU carbon trading plans
Heidelberg Cement CEO Dr Bernd Scheifele.
HeidelbergCement says the European Commission's planned extension of its emissions trading scheme in 2013 could threaten cement production in the EU. The company cites studies by management consultants McKinsey and the Boston Consulting Group that say the price of the emissions permits that will be required to produce and transport cement could reduce the price competitiveness of EU-manufactured cement by -50% to -100% by 2020.
HeidelbergCement, which has 36 cement plants in the EU, 12 of which are in Germany, said that in the worst case scenario the scheme could add € 920 million to its annual costs from 2013. "If we were forced to close the German plants, for example, we could offset this with the construction of two new high-performance production facilities in China with an investment volume of € 300 million", said Dr Bernd Scheifele, chairman of the company's Management Board.
The company employs 8200 people in Europe, 1500 of whom are based in Germany.
Dr Scheifele continued, "The cost advantages of China would almost double as a result of the CO2 expense, making competitive domestic production in Europe no longer an option. It would be feasible to supply European markets from locations outside the EU via an efficient trading network."
HeidelbergCement says it has made significant reductions in CO2 emissions in recent years. Having set a goal of reducing emissions per tonne of cement by -15% by 2010 it exceeded this, claiming to have achieved a decline of -18% in Germany and -20% in Europe by 2007. A company statement said, "Through their use of innovative technology, the European plants are among the most efficient locations worldwide in terms of CO2 reduction. This technology is being transferred to all cement plants throughout the Group."
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Comments (3)
Trading in Carbon Credits makes a total mockery of the so called concern about carbon emissions and completely discredits any concerns politicians may spout about caring for the environment. Carbon Credit Trading is big business, organisations are making real money out of this ridiculous situation.
Peter Morton at 11:45 on 30.10.2008
Report CommentThis is absurd. People say "few industries have ever moved due to environmental regulations" and then they put in regulations two orders of magnitude larger than anything else ever made? Even the greatest of nationalists won't hesitate to move when they can recoupe investment expenses in 4 months.
Let Europe commit suicide. Hopefully they will do it first so America won't do the same.
Ben at 13:05 on 31.10.2008
Report CommentSometimes I feel like I'm the only person in the world who has read Ayn Rand's "Atlas Shrugged". It's frightening how many of the themes from that book are being played out in front of our eyes at the present time. Get yourself a copy and see for yourself.
Burch Seymour at 14:48 on 31.10.2008
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