EU climate cash a windfall for an industry in downturn - The China Post

LONDON -- European factories are cashing in on an unexpected benefit from wilting output, selling surplus carbon emissions permits worth about 1 billion euros (US$1.29 billion) to raise funds on the carbon market.

A recession in Europe will dent industrial output this year and this will sap energy demand and carbon emissions, leading to a surplus of permits among big polluters including steel and cement makers.

Companies from some of the European Union's most polluting industries are now raising funds on the carbon market to help them weather the credit crisis.

That has raised some uncomfortable questions about a scheme meant to fight climate change rather than subsidize companies during a downturn.