Energy and emissions trading

Energy needed in processes is the main source of Outokumpu's carbon dioxide emissions. Outokumpu's carbon dioxide emissions in 2009 totalled 568 000 tonnes. Outokumpu's emissions trading activities fully comply with the relevant EU laws and regulations, with agreed procedures and with the Group's trading and risk policies. Carbon dioxide emissions under EU Emissions Trading Scheme were at a very low level in 2009 due to reduced levels of production, approximately 540 000 tonnes (2008: 820 000 tonnes). Outokumpu's carbon dioxide allowances in the UK, Sweden and Finland were sufficient for the Group's planned production.

The EU Emissions Trading Scheme after 2012

The European Commission (EC) and the European Parliament have agreed that the EU Emissions Trading Scheme (ETS) will continue, with the next trading period being 2013–2020. The most important issue for Outokumpu has been to qualify for a free allocation of emissions allowances during 2013–2020 by being part of an industry sector where there is a significant risk of carbon leakage. According to an EC decision, all of Outokumpu's ETS operations are qualified.

Free allocations of emissions are to be distributed according to efficiency based product benchmarks which will be finalised by the end of 2010. The renewed ETS directive states that member states can offer companies compensation for carbon dioxide related increases in electricity prices. As Outokumpu has three electricity intensive installations in three different EU countries, this is an important issue.

More information on climate change can be found here.