The European Union Emission Trading Scheme, which was launched at the beginning of 2005, is the first international cap-and-trade system in the world which is implemented in enterprises and based on trade in carbon dioxide and other greenhouse gas emission allowances.
In 2008, the second, 5-year settlement period of the greenhouse gas emission allowance trading scheme resulting from the obligations set out in the Kyoto Protocol commenced. Currently, three Ciech Group companies participate in the emissions trading system:
- Soda Polska Ciech – 2 power plants in Inowrocław and Janikowo; a total of 1 616 097 EUA /year *
- Vitrosilicon – 3 glass production lines in Żary, Iłowa and Pobiedziska; a total of 350 165 EUA/year *
- Alwernia – power plant; 34 531 EUA/year *
* EUA –CO2 emission allowances within the National Allowance Plan 2008-2012 (NAP II).
The large investment project implemented now in Soda Polska Ciech (the largest carbon dioxide emitter in the Ciech Group) involving a comprehensive modernisation of one of the power plants is to result in a reduction in carbon dioxide emissions into the atmosphere. Due to the opening of the Ash Management Plant in Janikowo in 2010, it will be possible to manage gaseous ashes generated during energetic coal combustion. Ashes are recycled by separation method and the final product is ash with a content of inflammable components of approximately 3-5 % - there is a high demand for the product from cement plants – and the so-called high-carbon ash with a content of inflammable components of approximately 40% - intended for new combustion in boilers. Due to the said solution, it will possible to maximally use the primary energy and, in consequence, reduction in CO2 emissions into the atmosphere.
In connection with the changes in the European Union Emission Trading Scheme to enter into force in 2013, involving inclusion of new sectors into the system and new rules for assigning the allowances based on an auction system, the Ciech Group companies will prepare themselves for the entry into force of the amended law in advance.
The installations operating at Sodawerk and US Govora do not participate in the European Union Emission Trading Scheme, but they will be included in the system in 2013. The soda industry, threatened with the carbon leakage phenomenon, i.e. transfer of the production outside the EU area, due to excessive burdening of products with costs of acquisition of carbon dioxide emission allowances will be entitled to use free allocations up to the emission benchmark from 10% of the most efficient soda installations in the EU. However, the allocation levels of free CO2 emission allowances proposed by the EC are decidedly too low and therefore the Group soda companies will have to incur considerable outlays on the purchase of the missing allowances.