Textile sector wins EU carbon battle

22/09/2009

Textile manufacturers in Europe will be pleased to learn they will not be subject to tough greenhouse gas emission legislation.

EU member states have approved a draft decision listing 164 industrial sectors and sub-sectors deemed to be exposed to 'carbon leakage'. Under the revised EU Emissions Trading System, which will apply from 2013, installations in such sectors will receive a higher share of greenhouse gas emission allowances free of charge than other industrial sectors. The final decision is likely be adopted by the European Commission by the end of the year after consideration by the European Parliament and the Council.

The issue of carbon leakage relates to the risk that companies in sectors subject to strong international competition might relocate from the EU to third countries with less stringent constraints on greenhouse gas emissions.