Iron Casting among those to get free CO2

Iron Casting among those to get free CO2 - EU. Industries from musical instrument makers to iron casting and finishing of textiles would be eligible for free allowances to emit greenhouse gases, documents released by the European Commission showed. The international competitiveness of 164 sectors out of more than 250 analyzed would be at risk, if they had to pay for all of the CO2 they emit as part of a European Union plan to broaden the scope of its market for CO2 allowances, the documents showed. The E.U. agreed last year to force many industrial sectors to reduce their greenhouse gas emissions by including them in its Emissions Trading Scheme from 2013. The scheme allows participants to buy more allowances to emit CO2, or sell them if they have too many. Some of these industries will get up to 100% free allowances, to make sure they don't lose out to competitors based outside of the E.U., who won't have to pay for allowances - or consider relocating their production sites abroad. The commission drafted a list of industries which would be eligible for free permits. The list was approved by experts from the 27 E.U. national governments last week, and will now have to be backed by the European Parliament and governments to gain final approval. The list includes aluminum and cement production, but also textile manufacturing, manufacture of motorcycles and bicycles, as well as manufacture of musical instruments and that of brooms and brushes. The list has been controversial, as industries and governments have been lobbying hard to be included or to include key sectors of their national economies. "We are not satisfied," said Axel Eggert, spokesman for Eurofer, the association that represents European iron and steel industries. Only six out of the 12 sectors the association would like to get free CO2 allowances are on the list, he said. The E.U. has made the fight to climate change a key priority, and it aims at leading international negotiations on a global deal to limit greenhouse gas emissions in Copenhagen, in December. "The risk of carbon leakage could be lessened by the international climate change agreement due to be concluded" in Copenhagen, the commission said in a statement. "The commission will therefore review the list in the light of the Copenhagen agreement and may propose revisions," it added.