Impact of EU Emissions Trading Scheme on Oil Refining

Dec 14th 2010

Michael Connarty:

To ask the Secretary of State for Energy and Climate Change (1) what assessment he has made of the likely effect on the UK oil refining industry of the introduction of Phase Three of the EU Emissions Trading Scheme; [30430]

(2) whether the introduction of benchmarks for Phase Three of the EU Emissions Trading Scheme will be phased; and if he will make a statement; [30431]

(3) what discussions (a) he, (b) Ministers in his Department and (c) officials in his Department have held with officials of the European Commission since May 2010 on the likely effect on the UK oil industry of Phase Three of the EU Emissions Trading Scheme. [30489]

Gregory Barker: My officials are in close contact with the European Commission and other member states about the implementation of Phase III of the EU Emissions Trading System (EU ETS). This includes discussing the rules to determine the amount of emission allowances to be freely allocated to installations (including off-shore oil and gas and the oil refining industry) which will be voted on later this week in the EU Climate Change Committee. The benchmarks will apply from 2013.

My officials have undertaken assessment of the effects on all sectors from the introduction of Phase III of the EU ETS. The analysis can be seen in the April 2009 impact assessment 'Impact Assessment on the EU Climate and Energy package and the revised EU ETS Directive':

 


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