The European Steel Association (EUROFER) has announced that negotiations on the reform of the EU Trading System (EU ETS) were concluded yesterday,November 8, after a legislative process of more than two years. While the agreement improves on the initial proposal in some places, it falls short of securing a global level playing field for the EU steel industry, exposed as it is to fierce global competition, EUROFER commented.
“We recognize the efforts made by the European Parliament to secure the global competitiveness of the EU steel industry. However, the agreement falls short in achieving this objective as even the most efficient steel plants in Europe are likely to face significant costs resulting from the system. These are costs that other steel industry contenders do not have to bear, risking a sector that is more exposed than most to global competitive pressures,” stated Axel Eggert, director general of EUROFER. According to Mr. Eggert, the final agreement adjusts some elements in the initial proposal, but it would have been possible to have developed a better package, one that could have balanced climate protection while limiting the impact upon industrial competitiveness.
The EUROFER director general concluded that a competitive and innovative European steel industry is essential for the transition towards a low carbon economy. Policy makers must build a level playing field and help develop a master plan for the development and implementation of breakthrough technologies with competitive costs.