European steel industry with mixed feelings about agreement on Emissions Trading System

“We welcome the effort of several member states to protect the competitiveness of the European industry. It is hugely important that industries exposed to international competition will continue to receive free allowances. We have opened the door for a fairer treatment of our industry; even so, the challenge is enormous. Ambitious benchmarks mean, only 5% of the installations of sectors at risk of carbon leakage will receive fully 100% of their needs. The risk of carbon leakage therefore is not entirely lifted”, says Gordon Moffat, Director General of EUROFER.

The directive will oblige the European industry to reduce its greenhouse gas emissions by 21% in 2020 compared to 2005. Since the European steel industry, according to the European Environment Agency, has already reduced its emissions by over 20% in the period from 1990 to 2004, an additional effort of 21% would add up to about 40%. If an international agreement is reached in Copenhagen next year, an additional effort of 10% may be asked of industry which will mean that the steel industry will be asked to reduce emissions by 50%.

The European Parliament now will have to approve the package on 17 December.

Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of over EUR 140 billion and direct employment of 370 thousand people, producing over 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)