Shell’s CEO noted that charging polluters for carbon credits, which were previously distributed for free under the European Union’s (EU) carbon trading system, could suffocate the continent’s refining industry.
Mr van der Veer stated that the refining industry, which has been reduced to a very marginal position in the past 20 years, will find it difficult to cope with a system that levies extra penalties.
The EU is seeking to enact a plan to reduce CO2 emissions by 20% by 2020, as compared to 1990 levels. The sale of carbon credits to the energy industry is reportedly part of the proposal to achieve these targets.
Mr van der Veer’s comments echo similar concerns across Europe, that such a carbon trading regime could result in an exodus of heavy industry out of the continent, to countries with relaxed pollution regulations.
