Eurofer urges EU to vote for ETS reforms.
February 14, 2017
European steelmakers' association Eurofer has urged the European Parliament (EP) to back the revisions proposed by the EP’s Environment Committee (ENVI) to the EU emissions trading scheme (ETS), according to Kallanish Energy's sister publication, Kallanish Steel.
The report by ENVI will be put to a vote tomorrow. It contains reforms that increase by up to 5% the free allocation volumes for industry, and exempts those sectors most exposed to carbon leakage, such as steel, from the Cross Sectoral Correction Factor.
“These elements of the ENVI approach are sensible, taking account of the extreme exposure of the EU steel industry to global competition,” Eurofer said, in a statement.
Eurofer welcomed the reforms, but added other elements, such as the benchmark flat rates and indirect costs, will need further work to protect the steel industry in Europe.
Last year, the share of European demand supplied by imports reached 25%, an important jump compared with the average share of 17% previously registered, Eurofer noted. This increase in imports highlights further the need for the European industry to have a level playing field, as well as the risk for carbon leakage through production outside of the EU, the association added.
“Eurofer maintains that at least at the level of the 10% best performing steel installations, there must be no direct or indirect costs resulting from the (ETS) system. … We trust that MEPs will now take the necessary decisions to ensure that the final agreement adopted in Plenary underpins environmental progress, but also keeps jobs, growth and innovation in mind,” Eurofer said.