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Joint statement by industrial energy consumers on unbearably high energy prices
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Brussels, 22 December - The energy-intensive industries call upon EU leaders to swiftly address the exponential increase in energy prices. Today’s period of unbearably high energy prices in Europe is already undermining the structural measures designed to secure affordable low-carbon energy, which is required to meet the objectives of the EU Green Deal.
The energy price crisis has hit most of the European countries. In recent months the energy priceshave increased 4 to 5 times, reaching even higher levels over the last days. In parallel, carbon prices have tripled since the beginning of the year. The main reasons for this situation are the financial market speculation from financial players including hedge funds and commodity trading houses, the imbalances in the gas market, seasonally decreased renewable energy production, reduced nuclear energy production, coal mine closures and increased carbon costs passed on in electricity prices. It has consequently forced numerous industrial energy consumers to curtail and/or temporarily close plants.
The ongoing situation has severely impacted the competitiveness and profitability of energy-intensive sectors’ European operations as they are most exposed to dramatic price spikes. Energy costs constitute a high share of their production and activity costs. Therefore, a prolonged period of unbearably high energy prices could lead to severe losses, relocation of European companies and an increase of carbon leakage. Furthermore, the crisis endangers the future of carbon-free investments and jeopardises the existing low-carbon projects in Europe. Swift action is needed to secure the energy-intensive industries’ investments to meet the decarbonisation challenge. Should appropriate funding not be granted, decarbonisation may become an even bigger challenge.
There are many instruments available to EU leaders to address the current energy crisis. The energy-intensive industries call on national authorities to quickly exploit the full potential of the toolbox presented by the European Commission in October. Furthermore, urgent actions are necessary at EU level to enable affected companies to overcome this situation, which is expected to last several months more, and continue investing in energy transition in Europe. Finally, the current situation illustrates the need for a reform of the Emissions Trading System Directive that incorporates measures that ensure effective carbon leakage protection and that prevents sudden increase in EUAs prices that would adversely impact energy costs.
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Brussels, 25 July 2024 – Major indicators in the European steel market show a steeper-than-expected downward trend, further impacting the outlook for this year and the next. Poor demand conditions, driven by ongoing factors such as high energy prices, persistent inflation, economic uncertainty and geopolitical tensions, are exacerbated by a manufacturing crisis affecting the largest steel-using sectors, including construction and automotive. According to EUROFER’s latest Economic and Steel Market Outlook, apparent steel consumption is further deteriorating. After a slump (-3.1%) in the first quarter of 2024, its rebound for the full year has been revised downwards (to +1.4% from +3.2%), as well as for 2025 (+4.1% from +5.6%). Similarly, output in steel-using sectors, after a decline in the first quarter (-1.9%), is projected to experience a deeper-than-expected recession (-1.6% from -1%). A recovery is anticipated only in 2025 (+2.3%). Steel imports continue to show historically high shares (27%).
Third quarter 2024 report. Data up to, and including, first quarter 2024
Picture Copyright: European Union, 2024 Source: EC - Audiovisual Service
Brussels, 18 July 2024 – The re-election of Ursula von der Leyen as President of the European Commission paves the way for the continuation of the ambitious initiatives started in her first term. For a stronger and prosperous Europe, defining a pragmatic set of measures within the first 100 days of the new Commission mandate is the right step forward to ensure the success of the EU’s industry transition, if properly implemented. The European Steel Association urges that the Clean Industrial Deal be complemented as a priority by a European Steel Pact, as proposed by the German delegation to the European People’s Party (EPP).