Energy
As an industrial consumer of energy, SABIC Europe has always emphasized the effective use of energy.
The efficient use of energy helps to strengthen our financial position, as well as limit the emissions of CO2. In 2005, our energy efficiency in Geleen (the Netherlands) was determined and verified by independent consultants to be, on average, significantly better than that of similar plants in Europe.
CO2 Emission trading
In 2002, the European Union issued a Directive providing the basis for a trading system for greenhouse gas emission allowances. SABIC Europe supports such a system, since it will help in reducing emissions of greenhouse gases in the most cost-efficient way. The proposed trading system will not permit industries to emit greenhouse gases unless they have 'emission allowances'. Such allowances are allocated per individual EU Member State and are tradable throughout the European Union.
SABIC Europe is in favor of a trading system that is both effective and fair: effective in the sense that the system will favor energy-efficient over energy-inefficient production, and fair in the sense that it will not lead to unequal market conditions.
New entrants and expansions of facilities must not be discriminated against. Moreover, efforts of companies such as SABIC Europe that started improving their energy efficiency at an early stage should be recognized. The allocation principle for the allowances is therefore of crucial importance.
The EU ETS (Emissions Trading Scheme) is still in its infancy. After a hectic first Trading Period (2005 – 2007), preparations for the second period (2008 – 2012) are now underway. Lessons learned from the first period - and changing principles - will lead to significant changes.
SABIC Europe puts great effort into lobbying for an allowance and trading system that is based on relative performance standards (as opposed to the use of absolute figures and a fixed cap). The concept of benchmarking – as successfully used in the Dutch ‘Benchmark Covenant’ - can provide an objective basis for allocating allowances. SABIC Europe supports the use of such a system on a European scale.
Background documents
Towards a simple, robust and predictable EU Emissions Trading Scheme
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Illustration of a market distortion under a cap & trade regime
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Options and consequences for the allocation of allowances to electricity producers
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Climate change challenges and the search for a sustainable policy
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EU Emissions Trading Scheme: effectiveness, competitiveness and the level playing field must be improved
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