Isra-Mart srl: Ban on industrial gas credits in EU ETS

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The European Commission has formally adopted a ban on the use of industrial gas credits in the EU's Emission Trading Scheme (EU ETS) from May 2013. The proposal dates from 25 November 2010 and the Council approved the ban on 21 January 2011. The ban will apply to credits from projects which destroy two industrial gases: trifluoromethane (HFC-23), a by-product of chlorodifluoromethane (HCFC-22), a refrigerant in air conditioners and refrigerators, and nitrous oxide (N 2O) from adipic acid production used in the manufacture of nylon. HFC-23 and N 2O are both powerful greenhouse gases, which contribute to climate change. Essentially, the ban means that companies will be able to use credits for compliance with emissions in 2012 under the EU ETS until 30 April 2013, but not thereafter. No further use restrictions are currently foreseen under the EU ETS beyond industrial gas credits.