EU eases up on food sector over carbon

Posted by Daniel Palmer on 22nd September 2009

Key elements of the EU food industry should be exempt from plans to auction carbon dioxide emissions permits from 2013, the European Commission has said.

The EU executive has unveiled a draft list of businesses it fears could relocate to jurisdictions with weaker climate change rules.

Under the list released on Friday (18 September), selected industries would have free carbon credits from 2013 to 2020 and pollution permits would be capped at the 2007-8 levels of the most efficient 10% of companies in a particular sector.

Food industry sub-sectors receiving this treatment include manufacturers of starches, sugar, processed and preserved fish and tomato puree and paste.

Processors of solid milk and cream, lactose and lactose syrup, casein, dry bakers’ yeast, gelatin, hollow glass and food processing machinery were also in the list.

Brussels will review the list for final approval by the New Year, adding or removing some industries.

This would follow December’s UN Copenhagen conference and its hoped-for international climate change agreement.

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