December 03, 2008
EUROFER position on emission trading scheme
EUROFER position on the Commission proposal for the revision of the EU Emissions Trading System Proposal for a Directive of the European Parliament and the Council amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community
The European steel industry’s situation with regard to Climate Change policies is characterized by
1. A history of achieved CO2 reductions both expressed per tonne of products and absolute2The European Environment Agency calculates for the EU 27 steel industry a reduction of 21 % in 2005 compared to 1990 levels
2. Operating at the technological limits of the currently available production processes,
3. Commitment to research into breakthrough technologies,
4. Exposure to fierce international competition.
In response to the EU’s Climate Change commitments and in view of the above conditions, EUROFER calls for a Climate Change policy which
1. Has the ultimate goal of implementing a global CO2 price which provides for equal conditions for competing industries,
2. Meanwhile, by promoting best performance, maximises industrial CO2 mitigation effects within the EU whilst avoiding carbon leakage,
3. Strengthens financing of research.
To realize the above, EUROFER deems it appropriate to include criteria on the avoidance of competition distortion into any International Agreement; to support Global Sectoral Agreements as an additional driver towards an International Agreement or as one of its building blocks; to base allocation of EU-ETS-allowances on “benchmarking” until an International Agreement as described above comes into force; to consider carbon equalisation measures for cases of carbon leakage not addressed by benchmarking; and to provide for substantial support by the Community and the Member States for industry research activities.
The research project of the steel industry with the highest profile in terms of reducing carbon use in steelmaking is the ULCOS project. It attempts to achieve clarity on the technical feasibility of certain breakthrough-technologies and their combination with capture and storage between 2015 and 2020. The steel industry’s activities are also aimed at the development of steel applications, which offer CO2 mitigation potential, for example, for energy efficient housing, higher efficiency for electricity generation, sea-borne wind power stations, submerged hydro-electricity, lightweight vehicles or more energy efficient electricity transformation.
The European steel industry is committed to contribute to the EU’s objective to reduce greenhouse gas emissions by 20% in 2020 compared with 1990 and by 30% provided that other countries commit to comparable efforts in the framework of a global agreement.
In pursuing this path towards a low carbon economy EUROFER recalls3Presidency Conclusions, Brussels European council, 13/14 March 2008, doc 7652/08 the need to be consistent with EU sustainable development, competitiveness, security of supply the need for sustainable growth and to recognize the risk of carbon leakage in certain sectors. The Commission referred to the need to achieve high environmental performance and energy efficiency without losing competitiveness 4Communication on the Competitiveness of the Metals Industries.
In line with the general position of EUROFER on Climate Change politics as described above and the recommendations of Council and Commission, EUROFER welcomes the proposal for a reviewed EU ETS Directive but identifies the need for the amendments which we list above to secure the objectives set by the European Council.
