CEOs representing a wide part of European steel industry co-signed a letter addressed to the governments of all EU member states, calling on political leaders to “help preserve a sustainable and globally competitive European steel industry”, the European Steel Association (EUROFER) informed. The letter highlights the specific costs of the EU Emissions Trading System reform, as it exists today.
EUROFER, which represents 100% of steel production in the EU, notes that, while the European Parliament produced a version that would go some way to limiting the impact of the EU ETS on European steel’s competitiveness, the European Council text provides no such protections.
“The European steel industry is one of the most innovative in the world. Our CO2 mitigation technologies are world beating. However, the EU has a large, open economy – meaning that if the post-2020 reform of the EU’s Emissions Trading System (EU ETS) creates costs for even Europe’s best performing steel plants, we will find ourselves uncompetitive in the fierce global marketplace for steel”, said Axel Eggert, Director General of the EUROFER.
Mr Eggert also commented that if EU ETS directive were to be adopted without some of the improvements requested by the European Parliament, there would be a shortage of emissions allowances for the industry of around 35% by 2030.
The European steel industry appreciates that climate protection is a critical issue and supports the necessary measures to bring greenhouse gas emissions under control. However, the industry highlights that these CO2 emissions reduction efforts must be conducted cost-effectively and with a mature regard to EU steel’s global competitiveness.
“Steel produced abroad can be up to 50% more CO2 intensive than the same product produced in Europe. Getting the EU ETS post-2020 reform right is therefore both a matter of jobs, growth and competitiveness, but also of making sure we do not simply export our CO2 outside the EU”, concluded Mr Eggert.