Ireland: The chief executive of Ecocem, which has 'green' cement plants in Ireland, France and the Netherlands, has called for an 80% windfall tax on cement manufacturers in Ireland, which are currently making profits from the EU Emissions Trading Scheme (ETS). Donal O'Riain says that the Irish cement sector has lost 75% of the demand seen during the boom years of the mid-2000s and that 'anomalies' between its current output and the ETS mean that the Irish economy is losing out.

It is thought that the over-allocation of carbon credits, which now far exceed production requirements, have cost the Irish exchequer Euro120m since 2005 and could cost double that in the seven years to 2020. The Irish cement industry currently gets tens of millions of Euros every year in 'profits' as a result of the scheme.

Previously, the Irish Department of Finance increased the tax on profits from the sale of the credits, from 12.5% to 30%, by ruling that they have to be taxed as a capital gain rather than at the corporation tax rate. O'Riain said they should be taxed at up to 80%. He said that a system that was designed to encourage cement producers to reduce their CO2 emissions was instead incentivising them to produce CO2 at the public's expense.

O'Riain has called on the Irish government, while it holds the European presidency, to change the rules governing the ETS system. He said one of the effects of the way the system operated was to subsidise those plants using environmentally unfriendly practices. "Every 1t of polluting cement in Ireland is sold with a taxpayer subsidy of 17% of the selling price," said O'Riain.