Debate on the post 2020 EU ETS directive revision is moving on in the European Institutions. In the European Parliament both Environment (lead) and Industry Committees held first exchange of views on the draft reports. Rapporteurs presented their initial proposals. Both of them include an amendment introducing the “tiered approach” to free allocation. While MEP Duncan (ENVI) introduced “tiering” with a possibility of a qualitative assessment kept for the “borderline” sectors, MEP Federley (ITRE) proposed to delete the qualitative assessment and suggested higher “tiering” thresholds. In both approaches, a consequent reduced share of free allowances would expose certain industrial sectors, among which also ceramics, to increased carbon, investment and jobs leakage risk.

A detailed ceramic industry position on the tiered approach to carbon leakage in ETS post 2020 can be found here.

For more information read also: Energy intensive industries reaction to tiered approach to carbon leakage protection