European Council’s conclusions on the EU ETS and carbon costs: Possibly a first step towards a more realistic approach in the long term but clearly insufficient to address the short-term needs and challenges faced by the industry
Cerame-Unie, the European Ceramic Industry Association, takes note of the conclusions adopted by the European Council on 19 March and welcomes the attention given by a large number of EU member states to the challenges linked to rising carbon costs. These discussions may represent a first step towards addressing the medium and long-term structural issues of the EU ETS, notably as the Council conclusions call for a review “to reduce the volatility of the carbon price and mitigate its impact on electricity prices, including related supply chain costs, and on diversion of activities” and the letter of 16 March of President von der Leyen to the Council mentions that the ETS review would notably “set out a more realistic decarbonisation trajectory beyond 2030”.
However, the short-term measures evoked in the conclusions or in the letter by President von der Leyen fall short of guaranteeing the urgent measures needed on carbon costs to support energy-intensive industries facing an unprecedented crisis. Emergency measures are needed now, not in 2030!
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