New system will cost Finnish industry an additional 5 to 10 billion euros

The new emissions trading scheme as outlined by the European Commission will create unprecedented additional costs for Finnish, according to EK Newsletter.  The enormity of these costs is alarming.

According to the Pellervo Economic Research Institute PTT, the costs for energy-intensive industry would increase by 1 to 2 billion euros in 2020 if these companies were forced to purchase all their emissions rights through auctions. The additional costs for industry for the entire 2013-2020 emissions trading period would total 4.9 to 9.9 billion euros.

This would eliminate the operating profit of these sectors either in part or in total while destroying the operating conditions for many industrial sectors in Finland.

The figures for Finland are alarming. The EU should make a clear policy decision already at this week’s summit meeting that energy-intensive industry active in foreign competition is kept outside the auctioning of emissions rights. Emissions rights that cost money can only be introduced when plants outside Europe are made liable to the same level of obligations. Industry considers it important that a global climate agreement is reached in Copenhagen in December 2009, emphasises Tellervo Kyla-Harakka-Ruonala, Director of the Confederation of Finnish Industries EK.

EK commissioned PTT to calculate what impact the European Commission’s proposal in January regarding changes to the emissions trading directive would have on Finland’s energy-intensive industry.