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Letter from 76 steel industry CEOs raises alarm about shape of Emissions Trading System reform- The 18th China(Guangzhou ) Int¡¯l tube & pipe Processing Equipment Exhibition
5/31/2017 steel tube expo-tube &pipe expo |
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CEOs representing nearly the entire European steel industry today co-signed a letter addressed to the governments of all EU member states. The letter calls on political leaders to ¡°help preserve a sustainable and globally competitive European steel industry. In Europe we must be able to produce the innovative steels that underpin modern society - and that help reduce CO2 emissions.¡±
Speaking after the signing of the joint letter Axel Eggert, Director General of the European Steel Association said ¡°The European steel industry is one of the most innovative in the world. Our CO2 mitigation technologies are world beating. However, the EU has a large, open economy ¨C meaning that if the post-2020 reform of the EU¡¯s Emissions Trading System (EU ETS) creates costs for even Europe¡¯s best performing steel plants, we will find ourselves uncompetitive in the fierce global marketplace for steel.¡±
The letter highlights the specific costs of the EU ETS reform as it exists today. While the European Parliament produced a version that would go some way to limiting the impact of the EU ETS on European steel¡¯s competitiveness, the European Council text provides no such protections.
Quoting the letter, Mr Eggert said, ¡°Were the EU ETS directive to be adopted without some of the improvements requested by the European Parliament there would be a shortage of emissions allowances for our industry of around 35% by 2030. In addition, the sector will be even more exposed to the carbon cost pass-through in electricity prices. Other industry sectors under the EU ETS do not face these constraints to the same degree.¡±
The European steel industry appreciates that climate protection is a critical issue and supports the necessary measures to bring greenhouse gas emissions under control. However, the industry ¨C as evidenced by the wide support from the sector¡¯s leadership ¨C feels obliged to highlight that these CO2 emissions reduction efforts must be conducted cost-effectively and with a mature regard to EU steel¡¯s global competitiveness.
¡°Steel produced abroad can be up to 50% more CO2 intensive than the same product produced in Europe. Getting the EU ETS post-2020 reform right is therefore both a matter of jobs, growth and competitiveness, but also of making sure we do not simply export our CO2 outside the EU¡±, concluded Mr Eggert.
- The 18th China(Guangzhou ) Int¡¯l tube
& pipe Processing Equipment Exhibition
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