The European Parliament has scheduled voting on various amendments on February 28 regarding the energy efficiency directive that could cause confiscation of emissions trading system allowances. However, as expressed by the European Steel Association (EUROFER), cancelling allowances will result in an artificial increase in the carbon price, which is at very low levels due to the economic crisis.
Gordon Moffat, director general of EUROFER, stated that EUROFER agrees with EU Commissioner Connie Hedegaard's view that a politically regulated system should not be adopted over a market-based system where it is normal for prices to go down in line with shrinking demand due to the economic crisis in Europe. "Manipulation of the EU's emission trading market would destroy the whole idea of a market-based system," Moffat went on to say.
EUROFER still supports the EU's objective to reduce CO2 emissions by 20 percent by 2020, compared to 2005; however, it says EU climate change policy must secure equal treatment internationally of globally traded, energy-intensive goods.