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CEMBUREAU responds to proposals on EU ETS

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World Cement,

CEMBUREAU has taken note of the Commission’s proposals on EU ETS post-2020 and will now proceed to a more in-depth analysis. The intention of the research is to engage in a constructive discussion with the Commission, European Parliament and Member States.

While the proposal acknowledges the importance of a continued carbon leakage protection however CEMBUREAU finds it disappointing in that it maintains the cross-sectoral correction factor. Even if the Commission claims its application will be minimised, the allocation to the best performer would be drastically reduced through the combined application with a percentage-based benchmark reduction.

CEMBUREAU’s discussions with the institutions will focus on how to reconcile such an approach with the clear guidance given by the European Council in October 2014 that the most efficient installations in energy-intensive sectors should not face undue carbon costs leading to carbon leakage. From an initial assessment of the proposal, CEMBUREAU feel that the balance has not been struck and the company’s competitiveness will be negatively affected. Best performers need full free allocation to be able to further invest and benchmarks that are based on technological feasibility.

CEMBUREAU has welcomed the Commission’s focus on support for innovation but hopes that carbon capture and reuse would also be eligible for such funding.

Adapted from press release by Joseph Green

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