German industry is set to pull out of government talks over the allocation of emissions trading certificates because the firms involved cannot agree, weekly magazine Der Spiegel said on Saturday.
Utilities such as RWE, Germany's biggest coal-fired generator, and Vattenfall Europe want all incentives aimed at promoting a switch from coal to natural gas struck from the allocation plan, the magazine said. E.ON, which has taken over national gas market leader Ruhrgas, is set on securing the most generous special allocations as compensation for discontinuing the use of nuclear energy.
The power-intensive chemical, steel and cement industries are worried energy producers will seek to obtain special pollution rights at their expense, Spiegel said.
Attempts by Germany's BDI industry federation to negotiate a compromise have so far failed, the magazine said.
On Friday the environment ministry proposed cuts in carbon dioxide output from sites covered by the planned European Union emissions trading scheme, drawing protests from power producers.