ArcelorMittal to get 1 billion pounds for carbon credits

ArcelorMIttal, the biggest steel maker in the world, could gain 1 Billion pounds under European scheme, which is aimed at curbing global warming. Carbon credits are provided to the companies under the European Union Emissions Trading Scheme (ETS), which can be bought and sold in open market.

The European companies are permitted by the ETC to emit a specific amount of the carbon dioxide, which is a green house gas. Companies can buy and sell the unused permits in the open market.

Arceleormittal has carbon credits of worth 1 billion pound, which are valid till 2012.

The price of each carbon credit it is about 12.70 pound, but the European Union wants to drive it to 30 pounds per credit to push green practices among companies.

ArcellorMittal boasts of having more than 80 steel plants around Europe, has confirmed Pearson's figures. The ETS covers 10,000 industrial installations, which are responsible for 40% of the EU's greenhouse gas emissions.

Regarding the issue, one of the spokesperson of the company said, "The extra surplus arose when actual steel production fell way below forecasts because of the unexpected global economic crisis. As the world returns to growth, we expect to use them up."

Mr. Laxminiwas Mittal holds 43% stake in the ArcellorMIttal and is believed to be the richest man in the Britain.