Backloading decision undermining confidence in policy framework
Eurofer criticises today’s approval of backloading by the European Parliament “The decision will needlessly increase energy cost for the European steel industry and the industry in general at a time of crisis,” says Gordon Moffat, Director General of the European Steel Association. “It is time to stop piecemeal interventionism and think about a stable framework for growth in Europe. Globally competitive energy costs are part of this.”
According to today’s decision 900 million carbon emission allowances would be taken out of the market with the aim to increase prices for the certificates traded within the EU Emissions Trading Scheme (ETS). This proposal from the European Commission had already been rejected by the European Parliament in April this year. Today’s vote represents a complete reversal of the earlier position.
Eurofer believes that the measure does not improve the functioning of the ETS. Gordon Moffat: “It is a fact that backloading is not necessary for reaching the ETS targets. Today’s decision represents unnecessary interference in a market-based system. It once more undermines confidence in the policy framework, which is so urgently needed for investment.”
Represented by EUROFER, the European steel industry is a world leader in its sector with a turnover of 170 billion euro and direct employment of 360 thousand highly skilled people, producing on average 190 million tonnes of steel per year. More than 500 steel production and processing sites in 23 member states of the European Union provide direct and indirect employment and a living for millions of European citizens.
Gordon Moffat, Director General +32 2 738 79 26 (email@example.com)
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