Norwegian industry slams Kyoto auction plan

Proposed auction system in place of present taxes would drive jobs abroad, federation says

A proposed broad-based scheme for trading greenhouse gas quotas in Norway could cost up to NKr2.2bn (euros 268m) a year and seriously jeopardise the viability of many businesses, the country's leading industrial federation claimed yesterday.

Introducing an auction system for the six major Kyoto greenhouse gases in place of the current carbon dioxide taxes was one of the main proposals outlined by a government committee on climate change last month (ENDS Daily 17 December 1999). The committee estimated that, without using auctions, the present system would contribute to a 28% increase in greenhouse gases by 2010 over the baseline of 1990. Under the Kyoto protocol, Norway is restricted to a 1% increase.

In a recent submission to the committee, the Federation of Norwegian Process Industries (Pil) calculates that the proposed auction would cost its members between NKr84,000 (euros 10,200) per work place in the aluminium sector and NKr375,000 (euros 45,700) in the cement industry. Managing director Peer Terje Vold told the newspaper Bergens Tidende this would destroy competitiveness, and force many jobs abroad.

Follow Up:
Pil, tel: +47 23 08 78 00; {{Bergens Tidende}}, tel: +47 55 21 45 00.

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