EU asks Netherlands to verify lax CO2 targets for refining sector

London (Platts)--7Jun2004

The European Commission has questioned official CO2 emission targets set by
the Netherlands which would allow emissions from one of Europe's largest
refining hubs to rise by 2.5% from 2005 to 2008, a Dutch government official
said Monday. 

The Netherlands' National Allocation Plan sets out the number of
emission credits the country plans to issue to industry sectors ahead of full
emission trading under the EU's emerging CO2 emission trading scheme from Jan
1, 2005. In the document submitted to the European Commission earlier this
year, the Netherlands' 1.2-mil b/d of refining capacity has been allowed to
increase CO2 output by 2.5%/year over the 2005-2008 first phase of the scheme
compared with emissions in 2001-2002 period. Way ahead of capacity growth
forecasts, the yearly CO2 emission allowance reflects tougher EU fuel specs
which require more energy-intensive units to produce cleaner fuels. The main
driver is Europe's move to 10ppm sulfur gasoline and diesel which requires the
greater use of hydrodesulfurization plants.

In the UK's final NAP, the refining sector is allowed to increase overall CO2
emissions by 8.6% by the end of 2007 compared with the average level over the
1998-2002 period. Brinkhoff said the NAPs forecasts for refining sector CO2
emissions, drawn up by the Energy Research Center of the Netherlands, would
now likely be verified by new consultants. Under the EU emissions trading
directive, the European Commission has three months from the date of receiving
a member state's NAP to assess it, and then the member state has another three
months to change it. But all plans must be fixed by Oct 1, 2004.

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