On 9 Nov, after over two years of negotiations, the European Parliament, European Commission and the Council reached an agreement on the reform of the EU ETS Directive for the period post-2020. The agreement was confirmed by the Council on 22 November and is now to be approved by EP plenary vote at the beginning of 2018, so that the reviewed directive will enter into force. A series of implementing legislation is still to follow ahead of the commencement of the ETS phase 4 (2021 – 2030).

The aim of the reviewed legislation is to strengthen the EU Emissions Trading System and to ensure delivery of the Paris climate objectives. It is also expected to reinforce the carbon market with the adopted changes further strengthening the Market Stability Reserve. The measures foreseen to address the risk of carbon leakage will continue throughout the ETS phase 4 and will equally apply to all energy-intensive industries. The discussed, so called “tiered approach” to carbon leakage was considered discriminatory and rejected by the legislators, what is welcomed by the Cerame-Unie, calling for a “fair” EU ETS reform.  

The review of the EU ETS Directive is of importance to the European ceramic industry, as the system covers more than 1,200 ceramic installations across Europe, representing 10% of the total number of ETS installations, but less than 1% of EU ETS industrial emissions.

 More information can be found here.