Following the economic downturn, the carbon dioxide emissions of companies that are regulated by the European Union’s Emissions Trading Scheme decreased by 11% last year, analysts said Thursday.
The emissions of heavy industries across the region decreased to 1.886 billion tonnes last year, which is 233 million lower than the 2008 record, as estimated by Point Carbon. It also added that the decrease indicates a surplus in 77 million tonnes of allocated EU carbon permits.
Additionally, Point Carbon said that the utility emissions fell by 7%, while the emissions of industrial sectors such as steel and cement decreased by 17%.
The analysts, surveyed by Reuters this month, expect the companies regulated by EU’s scheme to have emitted 1.98 billion tonnes of carbon dioxide last year, which is below the system’s cap by approximately 100 million.
The cap-and-trade scheme, which is EU’s most significant weapon in fighting climate change, covers around half of the total emissions of greenhouse gases in the region.
During the first phase of the scheme in 2005-2007, emissions increased but the carbon permits’ overallocation, known as EU Allowances, resulted to the reduction of carbon prices to almost zero.
The emissions later dropped by 3% in 2008. However, EU’s tighter cap had caused the permits’ shortage for the first time, pushing the prices of EUA over €20 per tonne of carbon dioxide.
The preliminary data of emissions for 2009 under the scheme will be released in April by the European Commission.
Moreover, Point Carbon stated that their estimates included emissions from Norway, which is currently not included in the scheme, giving an error margin of around 32 million tonnes.
