This article was written by the CEO of a steel company in Europe who believes that industry has an obligation to reduce CO2 emissions. He also believes that it is important for Europe to restore its strength in the global manufacturing market. He does not think that will happen under the current emissions trading system. He argues that the current ETS unfairly allocates credits to industry, and it is more costly than credit systems in other countries. It represents a tax on industrial production, which along high energy costs in Europe, makes manufacturing in Europe uncompetitive in global markets. Moreover, he argues that renewable energy sources, which are subsidized in Europe, will not meet the requirements for industrial production in the near term.
The timing of this article is a bit strange because prices for emissions credits are falling Europe because of weak demand, and Europe seems to be pulling back on its efforts to reduce carbon emissions. Slow growth and high unemployment in Europe have demanded more attention by politicians. However, this article shows how difficult it is for any nation or political entity to deal with the reduction of carbon emissions on its own. It is a global problem, and it will require a level of global cooperation which we have failed to attain.