EU ETS

With the entry into force of the third phase of the EU ETS in January 2013, the European ferro-alloys and silicon sector has are facing new challenges. As energy-intensive industries, EUROALLIAGES’ members will become subject to a double impact, through direct emissions and indirect emissions,  i.e. the cost pass-through of carbon in energy prices.

Based on several analysis performed by the European Commission our sector is recognised as being exposed to a high risk of carbon leakage. Indeed, not only is it an energy-intensive industry, but it is also facing fierce and often unfair international competition. Carbon leakage status is vital for EUROALLIAGES' members.

Implementing the ETS Directive, the European Commission adopted Guidelines, under revision in 2020, for the attribution of State aid to compensate for indirect emissions. As an industry which is highly energy intensive, the ferro-alloys and silicon sector is among the potential beneficiaries of such State aid.

EUROALLIAGES is closely following the evolution of the EU ETS. Its members believe that the EU ETS should remain the principal driver of climate policy in Europe and that industry should not be subjected to fragmented actions. They support the EU’s efforts in combating climate change, and contribute to its success by improving its energy and carbon emission efficiency.

The European ferro-alloys and silicon sector is, however, opposed to ad hoc interventions in the carbon market, but instead, EUROALLIAGES has submitted suggested alternative solutions to feed the debate in the European Institutions and will continue to trigger dialogue in order to achieve the best results.

EUROALLIAGES' members believe that the EU should look forward to a real long-term vision for its climate and energy policies and base the post-2020 legislation on sectoral roadmaps relying on technical feasibility and economic viability. This must be done by taking into consideration binding emission reduction commitments by third countries and their impact at installation level for European industry, so as to create a real level playing field.

EUROALLIAGES has also called for a more consistent climate and energy legislation and for a decoupling of carbon price and transition to a low carbon economy and issues on a regular basis positions papers related to the regulatory development.

On 15th July 2015, the European Commission published its legislative proposal on the EU ETS reform for the post-2020 period. EUROALLIAGES published a press release in reaction to this publication (see below).

The Alliance of Energy Intensive Industries, where EUROALLIAGES is part, develops regularly positions papers related to energy & climate initiatives.