The European Steel Association (EUROFER) has released a joint letter from the energy-intensive industries in the EU regarding their concerns over recent developments for the cornerstone policy of the Emissions Trading System (ETS) and the planned introduction of the Carbon Border Adjustment Mechanism (CBAM).
“Industry’s climate-neutrality transition pathways need a predictable and enabling policy framework rather than abrupt step changes,” the letter said.
According to the statement, achieving the EU 2030 and 2050 climate change targets needs unprecedented investments. To deliver these, companies require a facilitating regulatory framework which includes secure and competitive access to sustainable energy and feedstocks with a strong focus on increasing the independence from third-country supplies; financing support to research, development and upscale of breakthrough technologies.
Legislation needs to accompany this transition with predictable measures and realistic timelines. The latest proposals on ETS and CBAM weaken carbon leakage provisions, further increase costs and harm the competitiveness of European industries in EU or international markets, the letter said. Instead, higher climate ambition needs to be achieved cost effectively and be accompanied by strengthened carbon leakage protection in EU and export markets against both direct and indirect carbon costs.