The European Steel Association (EUROFER) has released a joint statement by the energy-intensive industries in the EU on issues to consider in emission targets.
Accordingly, ahead of the European Parliament’s upcoming environment committee (ENVI) vote on the Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) scheduled for May 17, the energy-intensive industries have urged members of the European Parliament to focus on realistic benchmarks, sufficient free allocation levels, cautious interaction between the ETS and CBAM, effective measures for indirect costs, and disproportionate costs.
According to the statement, it is essential that the implementation of the Fit for 55 Package and in particular the ETS and CBAM deliver the agreed 2030 climate targets while supporting companies’ investments, preserving effective carbon leakage measures and avoiding disproportionate costs, capacity closures and job losses.
While the EU’s climate transition has also assumed a larger geopolitical dimension since the Russian attack on Ukraine, its short-medium term implementation for the EU industry is more challenging than ever, the statement said. Higher energy and carbon prices, high inflation and raw material shortages have led to production curtailments and stoppages may cause further disruptions in the near future.