18 May 2010 – A new study by ECF grantee CE Delft concludes that energy-intensive industries obtain windfall profits from the EU ETS.
CE Delft’s research on the effects of free allocations of carbon credits under the EU Emissions Trading Scheme (ETS) shows that up to €14 billion of windfall profits were made between 2005 and 2008 by European companies that claimed the ETS would hurt their businesses most. The study covers energy-intensive industries such as refining, iron, steel, and chemicals.
Though not specifically forbidden, companies should not pass the costs of their freely obtained ETS allowances into product prices. If they do, product prices will rise and income from citizens will be transferred to business.
The research reveals ample evidence that these energy-intensive industries have passed through the prices of their freely obtained allowances, resulting in windfall profits.
Learn more about the study and download a copy from the CE Delft website.