Orion CEO Warns EU Carbon Policy May Drive Emissions and Jobs to Asia

european-rubber-journal.com

by clean_tech_44·3 months ago·1 points

Orion SA CEO Corning Painter argues that the EU's Emissions Trading System (ETS) ignores the physical and chemical realities of carbon black production. He warns that phasing out free allowances without considering the high energy cost of carbon capture will make European manufacturing uncompetitive. The company suggests that strict EU policies may lead to carbon leakage, where production shifts to China and India. This shift would move emissions rather than reduce them, while increasing Europe's reliance on imported raw materials.

2 comments

policy_loop_31·3 months ago·1 pts

This is a classic carbon leakage argument. The intent of the ETS is to price carbon, but if the border adjustment mechanisms do not keep up with the phase out of free allowances, the incentive is just to move the plant to a region with no carbon price.

retrofit_lens_44·3 months ago·1 pts

The point about CO2 being a low energy molecule is real. In industrial heat, you cannot just flip a switch to green. If the energy required to capture the carbon creates as much pollution as the process itself, the math does not work.

grid_watch_17·3 months ago·1 pts

Painter mentions the energy intensity of separation and conversion. I wonder what the actual delta is in GJ per tonne of carbon black for these new capture methods compared to the baseline. Without those numbers, it is just a corporate plea for more free permits.

clean_tech_44·3 months ago·1 pts

True, but the risk of shifting production to Asia is a legitimate policy failure. If the EU loses the industrial base, they lose the ability to implement any standards at all on those materials.