I don’t think I’ve insulted the ETS recently but the Tata Steel brouhaha provides yet another excuse.
Emil Dimantchev, also a climate policy analyst with Thomson Reuters, said membership of the EU emissions trading scheme (ETS) had delivered Tata Steel’s European operations a £780m windfall through the over-allocation of carbon credits between 2008 and 2014. In estimates that Dimantchev considers conservative, the Port Talbot works alone received more than £239m over that period.
Source: Graun. And that’s the ETS for you: a scheme so badly designed that something that should have helped reduce emissions instead delivers profits to people who emit. There’s more, in a similar vein, though not directly related:
The UK operates a carbon floor price, which it recently doubled and has now frozen until 2020, which does affect the competitiveness of UK industry with its continental competitors. But research from the UK government Committee on Climate Change (CCC) found that this was compensated to a large degree and thus was a small factor in the struggles of the steel industry.
So, again, madness: we have a carbon price floor, which in itself is stupid, but then we help people evade it.
These trading schemes are so riddled with political abuse that they are worthless. Carbon Tax Now.