Norwegian Ministry Rules in Favor of Elkem on EU ETS Free Emission Allowances
Oslo, Norway – July 9, 2025 – The Norwegian Ministry of Climate and Environment has reached a decision in a complaint filed by Elkem regarding the allocation of free emission allowances under the European Union Emissions Trading System (EU ETS). The Ministry has concluded its review and ruled in favor of Elkem, a leading global provider of silicon-based advanced materials.
The case centered on Elkem’s eligibility and the specific methodology used for determining the quantity of free emission allowances allocated to its operations. Companies operating within the EU ETS are provided with a certain number of free allowances to help them manage the costs associated with reducing their greenhouse gas emissions, particularly in sectors considered at risk of “carbon leakage.” Carbon leakage occurs when companies move production to countries with less stringent climate policies, thereby shifting emissions rather than reducing them globally.
Elkem, with its significant industrial operations, has been a vocal participant in discussions surrounding the fairness and effectiveness of the EU ETS. The company has consistently emphasized the importance of a predictable and equitable framework for free allowance allocation to ensure its competitiveness while continuing its efforts to decarbonize.
The Norwegian Ministry’s decision signifies a recognition of Elkem’s arguments concerning its specific industrial processes and their comparability to benchmarks within the EU ETS. While the precise details of the Ministry’s reasoning are outlined in their official statement, the outcome is seen as a positive development for Elkem. It suggests that the Ministry found Elkem’s case compelling in relation to the established criteria for free emission allowance allocations.
This ruling is expected to provide greater clarity and stability for Elkem’s operations in Norway, allowing the company to better plan its climate strategies and investments. By upholding Elkem’s position, the Ministry acknowledges the challenges faced by energy-intensive industries in complying with ambitious climate targets while remaining internationally competitive.
Elkem has expressed its satisfaction with the Ministry’s conclusion. The company remains committed to its sustainability goals and views the EU ETS as a crucial tool in driving industrial decarbonization. This favorable ruling underscores Elkem’s dedication to responsible industrial practices and its ongoing efforts to contribute to a greener economy. Further details regarding the implications of this decision for Elkem’s future operations are anticipated.
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PR Newswire Heavy Industry Manufacturing published ‘Norwegian Ministry of Climate and Environment concludes in favour of Elkem in EU ETS free emission allowances allocation complaint’ at 2025-07-09 06:20. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.