(September 22, 2010) A host of energy and industrial companies in Europe are enjoying massive windfall profits after receiving excess carbon credits, writes Steel Guru.

According to a chart made by British NGO Sandbag, Czech power producer CEZ ranks 7th among European companies that profit most from excess carbon credits as it received about carbon credits worth GBP 98 million for 7 million tonnes of carbon dioxide in 2008-09.

According to the Centre for Transport & Energy, CEZ’s surplus of carbon credits is not caused by a greening of its production. A CDE analysis has revealed that a larger part of the amount of electricity generated by CEZ comes from outdated coal fired plants. Since 2005 the level of pollution caused by CEZ’s power plants has increased by 5%.

Mr Jiri Jerabek of CDE said that “The generous policy of the state in distributing carbon credits free of charge helps companies gain billions of crowns illegitimately. In addition, they are not be motivated to reduce emissions in the future.”

But CEZ disagrees with CDE’s statement.

Ms Eva Novakova spokeswoman of CEZ said that “Since 2005, we have raised production in emission free sources in the Czech Republic, above all in nuclear power plants, by more than 4.4 TWh. On the other hand, production in CEZ’s coal fired plants dropped between 2005 and 2009. Our emission factor in the Czech Republic has thus decreased since 2005 and the fall amounted to almost 15%.”

The emission factor is the ratio of the weight of issued emissions to the weight or volume of fuel.

According to Ms Novakova, CEZ plans to continue to cut emissions of its facilities by raising further production in nuclear facilities and by modernizing coal fired plants.

Top 10 companies profiting most from carbon credits in Europe:

Steel Guru, September 22, 2010

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