LONDON (Reuters) -INEOS owner and a British billionaire Jim Ratcliffe has called on the government to curb environmental costs on businesses, which he said, along with high energy costs, were driving investment away from the country.
The call comes as the government is under pressure to grow the economy, and as energy-intensive firms in Britain such as steelmakers struggle with what industry says are the highest costs in Europe.
INEOS faces a 15 million pound ($20 million) bill for its obligations under Britain’s Emissions Trading System, the company said. The ETS charges power plants and other industrial entities for each ton of carbon dioxide they emit as part of wider efforts to cut emissions and reach climate targets.
“This is not just INEOS, this is a reality for British manufacturers up and down the country: carbon emissions taxes and excessive energy costs are squeezing the life out of the sector,” Ratcliffe, chairman and founder of INEOS said in a statement.
INEOS’ joint venture with PetroChina International, Petroineos, last year announced its Grangemouth oil refinery, in Scotland would close in 2025 due to economic difficulties leading to the loss of 400 jobs.
Under the UK ETS companies must surrender carbon allowances equivalent to their emissions by April 30.
The Benchmark UK carbon contract is currently trading around 48 pounds ($64.01)per metric ton.
The equivalent contract in Europe’s ETS is trading around 65 euros ($73.76)/ton.
($1 = 0.7499 pounds)
($1 = 0.8813 euros)
(Reporting By Susanna Twidale; editing by William James)
