On 15 July 2015 the European Commission presented their legislative proposal for revision of the EU Emissions Trading Scheme (ETS) Directive, setting out the rules for the fourth ETS trading period (2021-2030). The proposal maintains an ambitious decarbonisation target as agreed by the European Council in October 2014. However, the European Council conclusions also stress the need to preserve international competitiveness of European industry.
We believe post-2020 carbon leakage mitigation must be in line with the adopted level of climate ambition. In the context of more stringent climate targets, a steeper emission reduction pathway, the existence of the Market Stability Reserve and foreseeably higher energy, carbon and environmental costs, it is essential that the legislative framework prevents an increase in carbon, investment and job leakage risks in SME-driven, manufacturing sectors, such as ceramics.
Such issues are of primary concern to our industry, since ETS covers more than 1,200 ceramic installations, representing around 10% of the total number of installations, but less than 1% of the industrial emissions. Ceramic sectors in the scheme include manufacturers of bricks, roof tiles, wall and floor tiles, refractories, sanitaryware, clay pipes and other ceramic products.