Energy-intensive industries provide direct employment to around 2.6 million people and represent the foundations of critical and strategic value chains for the EU economy and society. We support the objectives of the European Green Deal and companies in our sectors invest in concrete projects across a range of technological pathways to deliver deep emission reductions.
While the EU’s climate transition has assumed also a more urgent and larger geopolitical dimension since the Russian attack against Ukraine, its short-medium term implementation for EU industry is more challenging than ever. Skyrocketing energy prices, high inflation, soaring carbon prices and raw materials shortages are unprecedented challenges that already lead to production curtailments and stoppages and may cause further disruptions in the near future.
In this new context of a severe economic downturn looming, it is essential that policy makers shape the the Fit for 55 Package and in particular the Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) towards supporting companies’ investments, preserving effective carbon leakage measures and avoiding disproportionate costs, capacity closures and job losses. The increased EU climate ambition for 2030 can be achieved in a sustainable, socially sound manner only when accompanied by strengthened carbon leakage provisions in view of international competition that is not subject to comparable carbon costs, if any costs at all.
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