Finland-based paper producer Stora Enso reported a €7 million reduction in value of its inventory of emissions allowances in 2015, it said in its annual results published on Thursday.
The company’s holding of emission rights was €20 million at the end of 2015, compared to €27 million a year earlier, the results showed.
Carbon prices rose by 11% last year, suggesting that the company’s net holdings decreased notably, either because it sold allowances or because it turned more in for compliance than it received for free from governments.
Stora Enso said its production fell by between 2-4% in all sectors in 2015, with most of the company’s output based in the EU.
The company said its CO2 output per saleable tonne of production has fallen 32% since 2006, putting it well on track to meet its internal target of a 35% drop by 2025.
- The paper and pulp sector is one of the smallest regulated under the EU ETS and accounts for around 2-3% of the scheme’s emissions.
- Industrial companies in general built up a surplus of EUAs over the second trading phase (2008-2012), but many are expected to be net short over phase three (2013-2020)
- Signs of industry selling are closely watched by the ETS participants as the market’s 2 billion-plus EUA oversupply has led analysts to partly base price forecasts on assessing what prices will tempt industrials to sell their remaining surplus.
By Ben Garside – firstname.lastname@example.org