Joint Appeal to the political decision makers on the revision of the EU Emissions Trading System (EU-ETS)

This joint statement is an initiative of the social partners EMF and EUROFER in the Sectoral Social Dialogue Committee on Steel. EMF, the European Metalworkers’ Federation, represents the interests of 5.5 million metalworkers in Europe and is a member of the ETUC; EUROFER,the European Confederation of Iron and Steel Industries, represents the European steel industry with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing more than 200 million tons of steel per year.

EMF and EUROFER call upon the decision makers in the European Parliament, the Council and the Commission to improve the proposal on the revision of the EU-ETS so to ensure a fair balance between climate change measures on the one side and the competitiveness of the European industry, sustainable investment and high quality jobs on the other. Only a balanced recognition of social, economic and environmental aspects can secure a high level of employment, high social standards and the well-being of European citizens.

The proposal leads to a reduction of CO2 emissions by the current ETS sectors of 35 to 40% in 2020 compared to 1990. This alone is almost unachievable, it does not reward any early action which has been taken prior to 2005, and it leads to billions in additional costs for our industries in the coming years. To mitigate any further severe impact on our industries through the proposed auctioning of allowances - which is additional to the emission reduction requirements - EMF and EUROFER appeal to the European decision makers to support the following improvements of the proposal:

• Carbon leakage: Ensure that sectors at risk of carbon leakage receive fully 100% free allocation, based on sector specific benchmarks, until an international agreement is in force that provides for a level playing field for competitors. Immediately include a list of sectors concerned and introduce a much slower phase-in of auctioning to sectors which are not determined as being at risk of carbon leakage (or alternatively exempt all manufacturing industries from auctioning until such an international agreement).
• Benchmarks: Benchmarks must provide fully 100% of the allowances needed by the best performers. They must be based on technologies which are generally applicable and take into account the potential to reduce emissions. They must not prevent growth of the best performers.
• Waste gases: Approximately 50 % of waste gases from steelmaking are recovered and used for the generation of electricity. The draft directive imposes 100 % auctioning on these gases already from 2013. The sustainable use of unavoidable waste gases must be fostered and maintained. The operators of the installations generating these waste gases must receive free allowances at least at a level which is in line with the other allocation principles for those installations.
• Electricity costs: Indirect costs caused by increasing electricity prices lead to carbon leakage. This must be compensated with free allowances to the electricity consumer.
• International agreements: Criteria for an international agreement must be introduced in order to ensure a level playing field for competitors (i.e. participation of a critical mass of global production, equivalent measures for competitors, verification system, and enforceability).

Contacts

Gordon Moffat – Director General, EUROFER +32 2 738 79 20 (g.moffat@eurofer.be)

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

Peter Scherrer, General Secretary, EMF +32 2 227 10 10 (ccelis@emf-fem.org)