EU top court rules against ArcerlorMittal carbon challenge

A logo is seen on the roof of the ArcelorMittal steelworks headquarters in Ostrava, Czech Republic, April 1, 2016. REUTERS/David W Cerny/File Photo

LUXEMBOURG (Reuters) - The European Court of Justice on Wednesday ruled against steelmaker ArcelorMittal’s challenge against how the European Union allocates free carbon permits.

A number of companies have made legal challenges against the EU Commission, seeking to maximize the free allowances they receive under the cap-and-trade Emission Trading System (ETS).

The court said it had found “nothing that could affect the validity of the (European) Commission’s decision” in allocating free carbon allowances.

The ETS covers 11,000 energy-intensive industrial plants and power stations and is central to an EU target of a 43 percent cut to 2005 level greenhouse gas emissions by 2030.

ArcelorMittal had argued that the Commission’s calculations were flawed because it had failed to take into account that steel plants produced their own electricity from gas emitted in the steel making process.

Reporting by Michele Sinner; additional reporting by Robert-Jan Bartunek and Alissa de Carbonnel in Brussels; editing by Jason Neely