Analysts have figured out some steel manufacturing firms in Australia may because of the industrys emissions-intensive trade-exposed (EITE) activities. EITE sectors are those which have higher risks of carbon leakage and may shift their plants overseas to escape domestic emissions trading laws.
The Australian government has decided to distribute under the scheme beginning in 2010. The eligibility criterion for getting free permits is the amount of emissions generated for million dollars of revenue. Steel, aluminum and cement industries are likely to get the free permits whereas the LNG sector may not be entitled to this facility, stated analysts.
This has put around in the LPG sector, said Don Voelte of Woodside Petroleum. He further stated that the industry is not expected to get free permits partly because of the industrys success in cutting emissions.
Related posts:
- Australia: Around 1000 Firms Expected to Purchase Emissions Permits in 2010
- Australia: Government Excludes Agricultural Sector from 2010 Emissions Trading Scheme
- Australia Faces Rising Energy Costs Due to Emissions Plan
- July 7 Carbon Industry Top Headlines
- EU Emission Trading Scheme to Cover Aviation Industry from 2012