Based on Carbon Market Data’s research, RWE, Enel and E.ON were the three biggest CO2 emitters during the first phase of the EU emissions trading scheme (EU ETS). RWE, Enel and E.ON emitted in 2007 respectively 151 MtCO2, 97 MtCO2 and 91 MtCO2.
These figures are calculated at a group level, taking into account both minority and majority stakeholdings in other companies included in the EU emissions trading scheme. In 2007, the electricity generation capacity of the RWE Group amounted to 44.5 GW, of which 24.8 GW were fuelled with coal and lignite.
These two factors - the massive power generation capacity of RWE coupled with a high dependence on coal and lignite – make of RWE by far the largest CO2 emitter in Europe. RWE had in the first phase (2005-07) of the scheme a shortage of about 10 million allowances per year, and will face a bigger shortage of allowances in the 2008-2012 period of the EU emissions trading scheme.
The German energy company recently announced that it had already contractually guaranteed the acquisition of 25 million Kyoto-backed carbon credits. In the 2008-2012 period, RWE plans to acquire in total about 90 million carbon credits from Clean Development Mechanism and Joint Implementation projects. Companies with the highest carbon allowance surplus In 2007, the three companies with the highest surplus of EU carbon allowances (EUAs) were ArcelorMittal (18.5 million EUAs), Eesti Energia (5.3 million EUAs) and Dalkia (4 million EUAs).
The figure for ArcelorMittal does not include its Romanian iron &, steel installations that have not yet submitted their emissions reports. ArcelorMittal, the world‘s biggest iron and steel company, had by far the largest surplus in EU carbon allowances. It could even get more significant when ArcelorMittal ‘s Romanian installations will be included in the calculations.
To a certain extent, this huge surplus of 18.5 million allowances per year can help the company to face the surge in power prices occurred since the start of the EU cap-and-trade scheme.