London: ArcelorMittal on Monday said it has not
made any money from its excess carbon credits, bulk of which
was purchases during the global economic crisis.
"ArcelorMittal has unexpectedly large excess of credits,
a number of which it purchased, due to the unprecedented
economic crisis which has seen steel demand plunge by 50 per
cent.
The company has not profited from the excess credits,
which are needed for future production growth," said in a
statement here.
The company's statement comes amid reports that the steel
tycoon will get a one billion pound windfall from an European
scheme to curb global warming, if it chooses to sell its
excess carbon credits.
A recent report in The Sunday Times said ArcelorMittal
will make the gain on "carbon credits" given to it under the
European Emissions Trading Scheme (ETS).
The scheme grants companies permits to emit CO2 up to a
specified "cap". Beyond that they must buy extra permits.
The report said the company could either sell the excess
carbon permits priced at about 12.70 pounds each or store them
for future use. Either way it will have gained assets worth
around 1 billion pounds by up to 2012, The Sunday Times
reported yesterday.
Carbon credits are awarded to entities which cut down
their carbon dioxide emissions and these credits can be traded
like any commodity.
PTI
First Published: Monday, December 07, 2009, 19:18