EU Commission adopts package on energy and climate framework up to 2030 and on an industrial renaissance
“The Commission proposals on energy and climate up to 2030 will do nothing to promote an industrial renaissance, rather they will accelerate the deindustrialization which is already underway” says Gordon Moffat, Director General of EUROFER.
An EU ETS target of 43% CO2 emission reduction by 2030 compared to 2005 means a 60% reduction for the EU steel industry compared to 1990, which is technically and economically impossible to achieve with current technologies as the Commission services admitted in a study published in 2012 and 2013. “With these proposals even the most efficient steelmaker in Europe will have a cost disadvantage vis-à-vis its non-European competitors. Our most efficient plants will have to buy up to 30% of their need in emission permits already by 2020. There are no proposals made to safeguard sectors exposed to global competition in the mid-term and long-term, which is crucial for investment decisions. For post-2020 the current system even foresees phasing out of any free allocation to these sectors. Moffat: “We appeal urgently to the EU member states and the European Parliament to adopt some principles which would make the EU energy and climate policy workable for energy intensive industry and sustainable for the EU’s economy.” We are no longer in 2007, when this policy was devised, we need a climate policy which, in the absence of a global level playing field, will continue to safeguard Europe’s industry – we need 100% free allowances up to and beyond 2020 and real measures to tackle energy prices.
EUROFER reiterates that there are just three measures needed, which have however been disregarded in the proposals put on the table today:
Represented by EUROFER, the European steel industry represents the world leader in its sector, producing on average 170 million tonnes of steel per year with direct employment of 350 thousand highly skilled people. More than 500 steel production and processing sites in 24 EU member states provide direct and indirect employment for millions of European citizens.
Gordon Moffat, Director General, +32 2 738 79 26 (firstname.lastname@example.org)
Axel Eggert, Director Public Affairs & Communication, +32 2 738 79 34 (email@example.com)