The European Steel Association (EUROFER) has stated that it is calling upon the plenary of the European Parliament to fix the disruptive vote on the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) cast by the Environment Committee (ENVI). It said that the result endangers the European steel industry’s €31 billion investments needed for deploying 60 low carbon projects, as well as €45 billion in exports value and 30,000 jobs.
According to EUROFER, the decision to reduce free allocation by 40 percent for transitioning plants would be impossible to implement in just three years. In addition, the viability of the industries affected by the CBAM is deliberately endangered as there is no solution offered for exports competing with production from third countries that do not have the same stringent climate legislation as in the EU. Other proposals on ‘rebasing’ and on the Market Stability Reserve will also contribute towards fuelling carbon and electricity price increases, inflation and financial speculation, without any benefit for the achievement of the EU’s 2030 climate objective.
“Climate legislation needs to accompany this transition with balanced measures and realistic timelines rather than impose disproportionate costs that overburden companies before they can even implement their decarbonisation plans”, Axel Eggert, director general of the EUROFER, said.