The European steel industry calls for substantial support for research to meet CO2 target.
The European steel industry again urges EU decision makers to alleviate the worst effects of the Commission proposal for a revision of the EU Emissions Trading System (ETS) on the European steel industry to preserve its competitiveness.
"In the absence of a global level playing field, auctioning for industries exposed to international competition and which are at risk of carbon leakage simply does not work. Cuts in production and jobs would be inevitable. The European institutions and the member states therefore must secure fully 100% free allowances for these industries based on achievable benchmarks” says Eurofer Director General Gordon Moffat.
In addition to damaging our competitivity, auctioning will weaken our ability to make the research which is essential to meet the reduction targets. We have reduced emissions in the last 30 years by more than 60% and are now at technological limits as far as emission reductions are concerned. The costs for the steel industry to develop the break-through technologies which are required to go further and to contribute to the new target of -21% will be huge and will extend over a long period.
As an example of the way that policy makers can help European industry to meet emissions reductions targets, we welcome the enormous support (€40bln) which has been agreed for automotive producers, to develop low-emissions vehicles.
The steel industry needs support in addition to research already started and self-funded. 15-20 years is the minimum time from lab-scale to full-scale industrial units. A very rough cost estimate leads at best to a minimum cost of €240bln for implementation without R&D costs.
EUROFER calls upon the EU therefore to substantially increase support for research and development in the new technologies which are required in order for the steel industry to meet the reductions in emissions which are being demanded of it.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tons of steel per year.
Contact
Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)