Trilogue agreement on ETS and CBAM – Cembureau reaction

“The agreements on CBAM and ETS are essential to create a global level playing field on CO₂ and support our sector in its transition to carbon neutrality. It is positive that the EU institutions strengthened some key aspects of CBAM”, commented Koen Coppenholle, CEO of CEMBUREAU. “We however regret that the adopted texts do not provide a structural solution for exports. Some countries export up to 50% of their domestic cement production and these will be at risk should no concrete export solution be found before 2026”.

CEMBUREAU, the European Cement Association, issued its Carbon Neutrality Roadmap in May 2020. A large number of innovation projects are currently being deployed by the sector to reduce CO₂ emissions. Robust EU financing mechanisms, such as a focused ETS innovation fund and carbon contracts for difference, are critical to support breakthrough technologies to decarbonise our sector. A strong CBAM is also key to create a global level playing field on CO₂.

“Looking ahead, we need to focus on CBAM implementation and its watertightness, to ensure the mechanism fully equalises CO₂ costs between EU and non-EU suppliers”, added Coppenholle. “It is also essential that policymakers support EU industries like cement, which are confronted with unsustainably high energy costs at a time some of our trading partners are launching massive subsidy programs. CBAM, ETS and a strong innovation fund are essential part of the puzzle, but we look forward to Commission proposals for a truly ambitious industrial policy, as requested by the European Council in its meeting of 15^th December”.

Read the article online at: https://www.worldcement.com/europe-cis/23122022/trilogue-agreement-on-ets-and-cbam-cembureau-reaction/