Topic: Europe fails chemistry test as industry heads East
Writing in "The Times" newspaper recently, reporter Carl Mortished commented on the failure of the European Commission to invest in the chemicals industry. As a consequence, capacity is being lost as manufacturers head Eastwards around the globe.
The article focused on the failure of the Commissions Emission Trading System ETS over the excessive use of carbon trading permits, which has now resulted in the region being awash with carbon.
The European Union's climate and energy policy sets ambitious targets for 2020:1. Cutting greenhouse gases by at least 20% of 1990 levels.
2. Increasing the use of renewables (wind, solar, biomass etc) to 20% of the total energy production.
3. Cutting energy consumption by 20% of projected 2020 levels, by improving energy efficiency.
The truth is, chemicals are big business, worth around €37bn in 2007 rising to €70bn with the inclusion of pharmaceuticals. One of the fundamental problems facing the Commission, is balancing the need to meet the regions climate change obligations whilst retaining industrial capacity and mass employment.
There is no future for the European economy without a strong and innovative industrial base and therefore a high priority should be placed on decarbonising electricity generation. However it is unrealistic to expect industry to shoulder the entire burden and it is vital member states have a broad approach, covering all sectors such as housing and transport.
The UN's climate change conference in Copenhagen this December will shape the Commission's policy going forward. It is very much hoped that both China and USA will sign up. There is a clear political message across the region, without the commitment of these two super powers, it is inevitable that a revision of Europe's ETS will be needed.
Further information about the Copenhagen conference can be found at http://en.cop15.dk/
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Last edited by paulcw (10/25/2009 - 10:21 AM)
