
Talkshop readers may remember a damning report by UBS about the billions of public money lost in the ETS carbon trading system. It calculated that if the money had been invested in modernising the European power generation fleet, CO2 could have been cut by 40% (and generate a huge number of high quality jobs). EU emissions rose 1.8% last year.
Despite all the recent turmoil over the UK steel industry and meetings in Brussels today, the reality is that the European Union has actually been subsidising the Chinese steel industry for years, in payments hidden amongst its efforts to combat Climate Change.
Using complex methods of carbon credits and carbon offsets, the EU devised rules on climate change ended up paying Chinese steel manufacturers billions to upgrade their steel mills and other energy intensive industry.
According to the analysis company, European Insights, almost €1.5 billion was paid to over 90 steel plants in China with the purpose of modernising them to consume less energy, and making the plants more efficient. Taken with the downturn in Chinese trade and the need for them to reduce world market prices to sell their product, the output of these mills has flooded onto the European market making steel products artificially cheap and endangering thousands of jobs in the UK. One plant alone, Anshan Iron and Steel, received a payment of €150 million to help pay for the installation of up to date equipment and replace the old inefficient Communist era machinery.
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