The European Commission published, on 21 September 2020, its revision of the EU ETS State Aid guidelines for the compensation of indirect carbon costs for the period 2021-2030. These revised guidelines are designed to support sectors that, like steel, are most at risk of carbon leakage.
The publication follows the recent Commission’s proposal on increasing the 2030 climate targets. In the absence of comparable efforts by trading partners, it is important to develop a strengthened framework of measures to address the risk of carbon leakage, with benchmark-based free allocation and indirect costs compensation, as well as an effective carbon border adjustment mechanism
Compensation for indirect costs incurred by the steel industry is an essential measure to mitigate the risk of carbon leakage due to the carbon costs passed on to the steel sector from the energy sector.
EUROFER has the following overall perspective on the revision:
The European steel sector is committed to emissions reduction, and compensation for indirect carbon costs forms an essential part of the policy framework necessary to ensure that the sector can continue to decarbonise whilst remaining globally competitive.
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Brussels, 01 December 2022 - The changes brought to the Waste Shipment Regulation are a welcome step in the right direction to ensure that environmental and social standards equivalent to the EU’s are met when waste is exported to third countries. However, significant issues remain largely unaddressed with room for further improvement, in particular by strengthening monitoring for OECD countries and by pre-empting circumvention which risks to weaken the effectiveness of the new measures, says the European Steel Association (EUROFER) following the vote of the Environment Committee (ENVI) at the European Parliament.
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