By Alex MacDonald
The European steel industry will seek to annul the European
Commission's carbon dioxide emissions benchmark set for the bloc's
steelmakers by taking its case to individual member state courts
after the case was dismissed by the General Court of the European
Union, Eurofer said Thursday.
Eurofer, also known as the European Steel Association, said its
complaint on the allocation of CO2 allowances, which is based on
emissions benchmarks, has to be judged by a national court. Only
after a judgment by a national court may the case be referred to
the European Court.
"This is a delay but action by the steelmakers will now take
place on a national level followed by European action," Eurofer
said.
It noted that in principle the European steel industry is
unlikely to receive a verdict before the European Trading Emissions
directive comes into effect on Jan 1, 2013. As a result the
allowances will now be allocated according to benchmarks set by the
commission.
"However, if a court case on national level is successful, the
commission may have to change its benchmarks retroactively,"
Eurofer said.
Eurofer said the European Trading Scheme directive for reducing
CO2 emissions "makes it very clear that the benchmarks must be set
at a level which allows the allocation of sufficient emission
certificates to the best performing installations." It noted that
around five out of 100 installations should gain sufficient CO2
allowances. "This is clearly not the case with the benchmarks set
by the commission."
-Write to Alex MacDonald at alex.macdonald@dowjones.com