European steel industry welcomes Bali ‘road map’

“The outcome of the Bali conference and in particular the positive signs that the discussions sent on global sectoral approaches are a step in the right direction to tackle climate change”, says Gordon Moffat, director general of the European Confederation of Iron and Steel Industries (EUROFER).

The European Steel industry is exposed to intense international competition. Moffat points out that the EU emissions trading scheme (ETS) is not the appropriate tool to achieve CO2-reduction from European energy intensive industries, because it would eventually lead to a relocation of production and emissions. He therefore welcomes the positive view which the EU delegation gave at the conference with regard to sectoral approaches. “Sectoral agreements can succeed in a global reduction in emissions. Correctly designed, such agreements are tailored to the characteristics of an industry and will therefore deliver CO2 mitigation without relocation effects. The EU emissions trading scheme should have an opening clause for such agreements, both on EU level as well as on global level“.

Only nine countries or regions combine 90 % of the world’s steel production: Brazil, China, EU-27, Japan, Korea, Ukraine, USA. “A global sectoral agreement for the steel sector therefore could serve as an example on how to tackle climate change on a global basis“, Moffat explains.

Represented by Eurofer, the European steel industry is the world leader in its sector with a turnover of EUR 138.5 billion and direct employment of 372 thousand people, producing 200 million tons of steel per year.

Contact

Gordon Moffat, Director General +32 2 738 79 26 (g.moffat@eurofer.be)

Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)