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ENERGY & CLIMATE > EU ETS

EU ETS

Over the years, the Energy Committee has become increasingly involved in the European climate policy discussions.

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

As a consequence of the analysis performed by the European Commission in 2008-2009, then again in 2013-2014, the European ferro-alloys and silicon sector has been 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 as amended in 2009, the European Commission adopted in 2012 Guidelines 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, such as the recently adopted decision for temporary back-loading of emission allowances. Instead, EUROALLIAGES has submitted 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 decouplement of carbon price and transition to a low carbon economy.

 

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, was in dialogue with the Climate and Energy Commissioner, Miguel Arias Canete, whom it provided with a series of recommendations for the future proposal (see below). It also published a press release on 15th July 2015 calling on the European Institutions to ensure the conditions for global competitiveness of EU industry (see below).

EUROALLIAGES also used the opportunity to communicate its members' reaction and priorities with regard to the post-2020 EU ETS through a dedicated paper sent to EU institutions (see below).

 

On 15th February 2017, the European Parliament has agreed on its position for reforming the Emissions Trading System after 2020.

Read the Euroalliages' press release in attachment.