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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 – 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 – as evidenced by the wide support from the sector’s leadership – 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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