The Emissions Trading System is a cornerstone of EU climate change policy, with the declared objective to reduce industrial carbon emissions in a ‘cost-effective and economically efficient manner’.
The production of non-ferrous metals is highly electricity-intensive, and producers compete in global markets with internationally set prices that do not account for the additional costs borne by European producers and cannot be passed on without losing market share.
As long as other jurisdictions in all key competitor regions do not adopt climate policies that match the EU carbon costs, the Emissions Trading System will result in an existential loss of international competitiveness for energy-intensive sectors and in a reduction of capital-intensive investments in low-carbon technologies.
The ETS should therefore fully compensate those companies whom have invested in becoming more efficient, to stimulate further innovations and keep them competitive internationally.
We call on EU policymakers to establish appropriate conditions and safeguards to limit carbon costs, enabling industry to continue operating in Europe and competing on global markets:
More than 62% reduction of direct and indirect emissions compared to 1990
