#EUCO 23-24 October 2014
On 24 October 2014, the EU heads of state and government agreed on an ambitiousEuropean energy and climate policy framework for the period 2020 to 2030, including a CO2 emission reduction targetof 43% by 2030 compared to 2005 levels for sectors covered by the EU Emissions Trading System (EU ETS). They also gave guidance that the EU ETS will – at the level of most efficient installations – not impose direct and indirect CO2 costs on globally competing European industries such as steel.
“The new framework is an extremely challenging target for Europe’s industry in absence of similar constraints for our competitors worldwide. But theclear commitment by the heads of state to set safeguard measures at the level of the most efficient installations is a positive signal for industrial investment,growth and jobs in Europe”, says Axel Eggert, acting Director General of EUROFER.“A profitable European steel industry benefits European society as a whole. It will be able to continue contributing to significant emission reductions in Europe. OurR&D network, our innovations, products and product applications, based on the skills of our employees, are the foundations for a low carbon, energy efficient, and prosperous European society.”
The European Commission should now rapidly implement the safeguard measures and provide sectors at risk of carbon leakage with truly 100% free allocation at the level of the 10% most efficient installations, based on technically and economically achievable benchmarks, and based on real production instead of historic production levels. CO2 costs passed-through in electricity prices must be fully off-set in all member states.
“Those installations above the benchmark will have to buy additional allowances on the market. This gives them the right incentive to improve their carbon efficiency to the level of thebenchmarks. If they go beyond those benchmarks by developing and applying innovative, economically viable technologies, they may set new, more ambitious benchmarks”, Eggert says.