30th Sep 2023

Companies not ready for greenhouse gas monitoring

Almost half of European companies emitting large amounts of greenhouse gasses will not be ready to comply with the EU's emission trading rules when they come into force early next year, according to a report published today (2 June).

The report published by LogicaCMG - a large international IT and consultancy firm - reveals that only 51% of industry expects to be prepared for the EU's Emission Trading Scheme - which will enter into force on 1 January 2005.

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By then companies will have to precisely monitor their level of emissions, a process which requires sophisticated quantitative analysis methods.

"Our survey shows that many European companies are a long way off meeting this deadline", said Mark Earthey, global manager at LogicaCMG.

Under the EU Emission Trading Scheme (ETS), EU member states will limit their greenhouse gas emissions by allocating "emissions allowances" to companies. Companies which do not use all their allowances, will be able to sell them to firms that have difficulties keeping to their emissions ceilings.

Companies manufacturing products such as cars, steel, energy, paper and cement, risk penalties of hundreds of millions of euro if they fail to be sufficiently prepared before 1 January, the report states.

The LogicaCMG study was conducted in Belgium, France, Germany, Italy, the Netherlands, Spain and the UK, where a total of 250 companies were interviewed last April and May.

German firm fights the emission laws

Companies are increasingly beginning to feel the pressure. German utility firm EnBW announced today that it will take legal action against the German state over their allowances.

EnBW expects to be unfairly hit by the distribution of the emissions allowances as decided by the German lower house of parliament on May 28.

Member states: not ready either

EU members are also in the dock for late submission of their plan for implementing the scheme.

On 18 May, the European Commission began preparations for infringement proceedings against six EU states for failing to submit so-called "national action plans", under which they have to fix the level of emissions permitted to each of their companies.

Infringement proceedings are in process against Belgium Spain, France, Greece, Italy and Portugal.

Emissions trading is seen by the EU as a cost-effective way to implement the international Kyoto protocol, designed to reduce the effects of world-wide climate change.

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