A Scottish Conservative MEP has introduced an audacious quote to change EU law in a quote to increase the North Sea oil and gas sector by 1.5 billion.
Ian Duncan who is the European Parliament s designated law maker on the EU s flagship climate modification policy, the Emissions Trading System (ETS) is looking for to close a loophole in the law
that forces oil and gas operators to spend for emissions permits for the electricity they generate offshore.
Mr. Duncan said the change might be worth as much as 150million a year to North Sea companies over a decade.
He stated: Right now the ETS is like a vehicle without an engine we need to guarantee it is fit to do the task it should and drive emissions decreases in Europe.
Removing this loophole might save the North Sea oil and gas industry billions of pounds of lost earnings.
I will push as difficult as I can to convince my associates in the European Parliament and the Council that this is a common sense proposal worth supporting.
Under present EU rules, electricity carriers are not qualified for support through totally free allowances under the ETS because they can pass on the carbon rate to the houses and businesses they supply.
As off-shore oil and gas platforms are not linked to the electricity grid, they cannot pass on the expense to the consumer, and for that reason Ian has actually sought to make them eligible for totally free allowances like other industries covered by the ETS such as steel and cement.
The addition of the North Sea oil and gas sector in the ETS will mean oil and gas business are qualified for around 1.5 billion pounds’ worth of complimentary allowances between 2020, when the law comes into force, and 2030 when it will be examined once again.
Generally, electricity makes up 30-40% of emissions from oil and gas platforms.