Search Result: EU ETS - Reform

Alerts

VCI opposes the proposed EU ETS reforms and supports expanding fossil fuel infrastructure

05 August 2022

The German chemical association VCI published a new position paper on EU climate laws on 12th July, criticizing the EU Emissions Trading System (EU ETS) reforms and the planned phase out of free allocation of certificates, as well as not supporting absolute energy savings targets as part of the EU Energy Efficiency Directive. Meanwhile, on 25th July, VCI emphasized in a tweet the importance of Germany becoming independent of Russian gas, supporting the role of LNG terminals and coal as means to do so.

Corporate Leaders Group states support for ambitious EU Emissions Trading System reforms

23 June 2022

In a press release published on 8th June, the Corporate Leaders Group (CLG) supported an ambitious agreement on the EU Emissions Trading System (EU ETS) in the EU Parliament plenary. It stated that the free allocation of emissions allowances cannot continue in its current form, but suggested that they should only be phased out as fast as possible for sectors which do not face low-carbon competition from overseas on a large scale.

VCI opposes the EU ETS reforms

17 June 2022

Ahead of the plenary votes in the EU Parliament on the EU Emissions Trading System (EU ETS) reform and the Carbon Border Adjustment Mechanism (CBAM) on 8th June, the Verband der Chemischen Industrie (VCI) published a press release in which director general Große-Entrup stated the association's opposition to the proposed ETS reforms and emphasized the potential negative impacts of CBAM on the chemical sector.

thyssenkrupp opposes ambitious EU ETS reform reform

25 May 2022

In a press release on 23rd May, thyssenkrupp stressed that the reform of the EU Emissions Trading System (EU ETS) must not be too ambitious, in response to the EU Parliament Environment Committee’s vote to increase the ambition of the policy reform. The company was also unsupportive of the decision to speed up the phase out of the free allocation of emissions allowances alongside a Carbon Border Adjustment Mechanism (CBAM), and suggested that companies investing in decarbonization should be exempt from this phase out.

ArcelorMittal Europe CEO unsupportive of EU ETS reform and CBAM

18 May 2022

Speaking at a conference on 12th May, ArcelorMittal Europe’s CEO and President of Eurofer, Geet Van Poelvoorde, did not support proposed reforms to the EU Emissions Trading System (EU ETS), stressing high costs and advocating for a transition phase. Van Poelvoorde also did not support the EU Commission’s proposed Carbon Border Adjustment Mechanism (CBAM), advocating to maintain the free allocation of emissions allowances until 2030. However, he supported a regulatory framework for green hydrogen.

BusinessEurope advocates for greater flexibility in the ETS Reforms

24 March 2022

In a letter to the Chair of the EU Environment Council on 16th March, BusinessEurope advocated for more flexibility in the EU Emissions Trading System Reform to allow additional allowances to flow from the Market Stability Reserve and to increase the buffer for free allocation to cope with “current crises", weakening the ambition of the scheme. It also did not support the EU Commission’s proposal for a carbon border adjustment mechanism, as it proposed maintaining current free allocation of emissions allowances until at least 2030 and advocated for export rebates to be included.

Eurofer, Eurometaux, and CEMBUREAU opposed reforms to EU CBAM and ETS

03 March 2022

On the 23rd February, heavy industry associations CEMBUREAU, Eurofer and Eurometaux published a joint statement in opposition to the EU Parliament's International Trade Committee’s (INTA) proposed amendments to the Carbon Border Adjustment Mechanism.

The associations were unsupportive of the proposal to phase out the free allocation of emissions allowances in the EU Emissions Trading System (EU ETS) and advocated for the inclusion of export rebates. They also supported the continuation of indirect cost compensation in the EU ETS as a form of carbon leakage protection. Following this, on 1st March, the INTA Committee voted down an opinion on the CBAM after MEPs from the European People’s Party voted against compromise amendments they had previously supported, according to Politico.

BusinessEurope advocated for weaker Fit for 55 and is unsupportive of reforms to EU ETS

09 February 2022

In its February Newsletter, BusinessEurope’s Director General Markus J. Beyrer advocated for changes to the Fit for 55 package, seeming to suggest it should balance ambition with competitiveness. A senior executive also was unsupportive of the EU Commission’s proposed reforms to the EU Emissions Trading System, supporting the continuation of carbon leakage protection measures such as free allocation until 2030 and beyond.

Eurofer unsupportive of EU CBAM and strengthening ETS

16 December 2021

Speaking to the Financial Times, the Director General of Eurofer Axel Eggert did not support the EU Commission’s proposal for a Carbon Border Adjustment Mechanism, and opposed the phase out of the free allocation of emissions allowances in the EU Emissions Trading System. He stated that “rather than CBAM greening the EU industry, it would shrink it.”

Eurelectric supports EU ETS but has mixed position on EU CBAM

11 November 2021

Eurelectric, a European power sector trade group, stated support for reforms made to the EU’s Emissions Trading Scheme within the EU’s Fit for 55 climate package, including higher ambition and an increase in the linear reduction factor (LRF), in a reaction paper on the policy. However, the association appeared to have a mixed position on the EU’s Carbon Border Adjustment Mechanism in its reaction paper on the policy. Despite, advocating for the removal of free allocations and the inclusion of the hydrogen sector's emissions in the scope of the policy, the groups appeared to state support for exceptions for exporters.

EU industry associations supporting carbon leakage protection in EU ETS and other energy related legislations

28 October 2021

In a joint letter in October 2021, CEMBUREAU, Eurometaux and Eurofer supported the continuation of “effective” carbon leakage protection in the EU Emissions Trading Scheme (EU ETS) in reaction to high energy prices in Europe. The joint letter also advocated for government promotion of Power Purchase Agreements and government incentives for industrial demand-response.

EU industry associations released positions on EU Fit for 55 policies

26 July 2021

Various EU industry associations, including BusinessEurope, CEMBUREAU, IFIEC and Eurofer published positions on the EU’s Fit for 55 package last week, taking similar stances on several key policies. The groups advocated for the package to support industrial decarbonization with state support for breakthrough technologies. However, the groups did not support reforms to the EU ETS, some advocating for increased carbon leakage protection, and were negatively positioned on the CBAM and denounced its lack of export rebates. Eurofer did not support reforms to the RED to make the legislation binding. However, Cefic’s leadership team released notably positive, yet limited, statements on the package, supporting renewable energy legislation and the reform to the ETS that mandates that all revenues should contribute to emissions reductions.

BusinessEurope holds a mixed position on policies under the EU's Fit for 55 package

20 July 2022

In its weekly newsletter, published on 14th July, BusinessEurope stated positions on several of the EU’s Fit for 55 package policies, which have had positions agreed by all EU institutions. It supported increasing the ambition of the Alternative Fuels Infrastructure Regulation and was in favor of speeding up the EU Emissions Trading System (EU ETS) for road transport and buildings. However, it supported the EU Parliament’s proposal to stagger the rebasing of the EU ETS emissions cap. It also did not support proposals for an EU Carbon Border Adjustment Mechanism (CBAM), advocating for export rebates.

Eurofer opposes EU Emissions Trading System reforms

17 June 2022

An op-ed written by the President of the EU Parliament Environment Committee, Pascal Canfin, published in Le Monde on the 2nd June reported that in a “tsunami of lobbying” Eurofer had advocated to EU parliamentarians to not support the EU Commission’s proposal to reform the EU Emissions Trading System (EU ETS) by eliminating a certain amount of carbon credits from the market, called ‘rebasing’. Canfin stated that the EU Commission had shown that without this measure, there is no chance of achieving the necessary emissions reductions in European industry to align with the UN Paris Agreement. Eurofer also appeared to advocate for the EU Parliament to support the weaker draft of the EU ETS and the Carbon Border Adjustment Mechanism (CBAM).

Eurofer states opposition to ambitious EU ETS reform

27 May 2022

In a position paper published on 19th May, Eurofer advocated for the continuation of current carbon leakage protection measures under the EU Emissions Trading System (EU ETS) until at least 2030, alongside the EU's Carbon Border Adjustment Mechanism (CBAM). The association also did not support proposed reforms to the EU ETS, such as strengthening the Market Stability Reserve and rebasing the emissions cap. The Director General Axel Eggert came out against the EU Parliament Environment Committee’s vote to increase the ambition of the EU ETS and the CBAM, opposing the new phaseout date of 2030.

Corporate Leaders Group calls for strengthened EU ETS

23 May 2022

On 11th May, ahead of the REPowerEU plan, Corporate Leaders Group (CLG) Europe published a joint letter that highlighted a strengthened EU Emissions Trading System (EU ETS) is needed to deliver on the EU’s targets.

Confindustria advocates for EU ETS suspension

11 May 2022

In a 6th May 2022 press release, the President of Confindustria strongly opposed the EU ETS, calling for the EU’s flagship emissions trading system to be suspended and suggesting that it over-penalizes Italian companies. The association has repeatedly made this call since it was first detected by InfluenceMap in March 2022.

Confindustria called for temporary suspension of EU ETS

09 March 2022

According to an article on 1st March by Carbon Pulse, Confindustria reportedly called for a temporary suspension of the EU carbon market to ease pressure on industry due to high gas prices and the risk of a gas supply cut by Russia.

Industry groups advocated against reforms to EU ETS

16 February 2022

A joint statement energy intensive industry, including the International Federation of Industrial Energy Consumers (IFIEC), CEMBUREAU, Eurofer, Eurometaux and FuelsEurope, advocated against proposed reforms to the EU Emissions Trading System (EU ETS) including the revision of the benchmarks, rebasing and the tightening of the Market Stability Reserve. The groups supported the free allocation of emissions allowances and measures to avoid the application of the cross-sectoral correction factor.

EU heavy industry associations oppose EU ETS revisions

02 February 2022

In a joint statement in January 2022, energy intensive industries including CEMBUREAU, Eurofer and Eurometaux did not support the proposed phase out of free allocation of emissions allowances in the EU Emission Trading System alongside a carbon border adjustment mechanism, advocating for maintenance of both measures til at least 2030, and supported the inclusion of an export rebate. They also did not support proposed EU ETS reforms to reduce the free allocation of emissions allowances before 2030.

Verband der Chemischen Industrie has mixed position on climate policy

16 December 2021

A position paper, coordinated by Verband der Chemischen Industrie’s platform Chemistry4Climate, which includes over 70 stakeholders in the chemical industry, supported coordinating energy and climate policy in Germany to achieve the 2045 climate neutrality target. However, the paper advocated for carbon leakage protection measures in the EU Emissions Trading System and Germany’s emissions trading scheme. It also supported exemptions and caps on renewable energy levies for the chemical industry, but was in favor of increasing the 2030 Renewable Energy Target in Germany.

EnBW announces EU policy positions

04 November 2021

EnBW released a COP26 page on its corporate website discussing several elements of EU climate policy. The company stated support for the reforms made to the EU ETS, in particular suggesting waiting till after 2030 to integrate emissions trading systems for the buildings and road transport sectors.

However, the company appeared to advocate against increased ambition in the EU’s Energy Efficiency Directive, highlighting issues with the inclusion of new CHP high-efficiency criteria. Similarly, it supported a weakening of the EU’s Renewable Energy Directive, by suggesting the criteria for renewable hydrogen and bioenergy were too strong.

Finally, EnBW advocated for a greater role for fossil gas in EU policy. The company called for the weakening of the EU's taxonomy, particularly by including fossil gas for heating/cooling generation as a transitional activity. EnBW also suggested that the EU's Hydrogen and Gas Decarbonization Package applies too much pressure to transition away from fossil gas.

CEMBUREAU not supporting reforms to EU ETS and sent mixed message on EU CBAM

28 October 2021

In a position paper published in October 2021, CEMBUREAU did not seem to support several proposed reforms to EU Emissions Trading Scheme (EU ETS) mechanisms as it stressed the risk of carbon leakage. It also advocated for the expansion of ETS credits to CCUS and waste incineration.

In another position paper also published in October 2021, CEMBUREAU advocated against the reduction or removal of existing carbon leakage protection measures in the EU Emissions Trading Scheme (EU ETS) until a carbon border adjustment mechanism (CBAM) is “fully watertight.” It also supported export rebates in the policy, but was in favor of including indirect emissions in the CBAM.

VCI opposed reforms to renewable energy policy and EU ETS

26 July 2021

The German Chemical Industry Association (VCI) has been actively and negatively lobbying various EU and German climate policy over recent weeks, particularly focusing on the reform of the German renewable electricity levy, advocating for it to be abolished, and not supporting Germany’s 2035 renewable energy target of 100%. The VCI did not support Germany’s accelerated coal phase out in a position paper in July 2021, and its President Christian Kullmann did not support reforms to the EU ETS to reduce free allocation of allowances and opposed replacing carbon leakage measures with a CBAM in July 2021.

Eurofer supports the EU ETS and CBAM reform with exceptions

06 July 2022

In a press release, published on 1st July 2022, Eurofer’s Director General Axel Eggert supported the EU Council’s proposal for the Carbon Border Adjustment Mechanism and the reform of the EU Emissions Trading System (EU ETS), but suggested that the proposal needed strengthened carbon leakage protection measures and export rebates. He also stated that reforms such as rebasing the emissions cap and strengthening the Market Stability Cap should be avoided.

CEMBUREAU voices disappointment on failure to pass ETS reforms

17 June 2022

In press releases published on the 8-9th June, CEMBUREAU expressed disappointment at the failure of the EU Parliament Plenary to agree on proposals for the reform of the EU Emissions Trading System (EU ETS) and the Carbon Border Adjustment Mechanism (CBAM). CEMBUREAU stated support for "some key issues" within both the ambitious Environment Committee draft and the weaker EU Parliament draft, but did not specify its position on the phase-out timeline for free allowances.

BusinessEurope opposes increased ambition to the ETS and CBAM

25 May 2022

In a press release on 18th May, BusinessEurope Director, General Markus J. Beyrer, stated opposition to the EU Parliament Environment Committee’s vote to increase the ambition of the EU Emissions Trading System (EU ETS) and the Carbon Border Adjustment Mechanism by speeding up the phase out of the free allocation of emissions allowances in the EU ETS. He also did not support the proposal to make free allowances conditional on decarbonization efforts.

EU industry associations unsupportive of CBAM and EU ETS reforms

18 May 2022

In a joint statement published on 11th May, energy-intensive industry associations including Eurofer, CEMBUREAU, FuelsEurope and International Federation of Industrial Energy Consumers did not support reforms to the EU Emissions Trading System (EU ETS), including the proposal to strengthen the Market Stability Reserve and rebase the emissions cap. The associations also did not support the EU Commission’s proposed Carbon Border Adjustment Mechanism (CBAM), suggesting that the free allocation of emissions allowances in the EU Emissions Trading System (EU ETS) should be maintained until 2030.

Eurofer unsupportive of ambitious EU ETS reforms

04 May 2022

In an opinion piece for Euractiv, published on the 29th April, Eurofer Director General Axel Eggert cited the war as justification for slowing down the EU Commission’s proposed phase out of free allowances in the EU Emissions Trading System (EU ETS) alongside the implementation of a Carbon Border Adjustment Mechanism. Axel Eggert also did not support proposed reforms to the EU ETS to rebase the emissions cap and strengthen the Market Stability Reserve, stressing the impacts of a unilateral and high carbon price and international competitiveness. However, Eggert also advocated for the RePowerEU and Gas and Hydrogen Decarbonisation package to increase renewable electricity and green hydrogen since the war in Ukraine “undermined the possible role of gas as a transition fuel.”

EU industry groups warned about carbon leakage in CBAM and ETS

09 March 2022

On 24th February 2022, a range of cross-sector EU industry associations, including the European Automobile Manufacturers Association (ACEA), the European Association of Automotive Suppliers (CLEPA) and WindEurope, published a joint statement asking the EU Commission to assess the impact of the Carbon Border Adjustment Mechanism (CBAM) on downstream industries. The associations appeared not to fully support the CBAM, suggesting that it may cause carbon leakage if unspecified “necessary steps” are not taken, and appeared to support the Emissions Trading System (EU ETS) but stressed that unilateral action may also cause carbon leakage.

BusinessEurope unsupportive of reforms to EU ETS

16 February 2022

In a webinar with the rapporteur for the reform of the EU Emissions Trading System in the EU Parliament, Peter Liese, the Director General of BusinessEurope Markus J. Beyrer stated that the organization did not support the EU Commission’s proposed reforms to the EU ETS. In particular, he advocated against the reduction in free allocation of emissions allowances, and suggested that the proposal needs significant changes.

ERT opposes EU ETS reforms

14 January 2022

In a December 2021 report, the European Round Table for Industry appeared not to support reform of the EU ETS, not supporting reducing indirect cost compensation, and advocating for carbon leakage protection.

CEMBUREAU oppose ETD exemptions

17 November 2021

CEMBUREAU published a joint position paper advocating against the removal of Mineralogical processes from the sectors exempted from the Energy Taxation Directive (ETD), and stressed the cost burden from aligning the ETD with the EU's climate goals. The position paper emphasized the costs for industry from the EU ETS increased carbon prices and the increasing of the level of GHG reductions mandated by 2030 to 61%.

BDI supports global carbon price, but also weaker EU regulations

04 November 2021

The Federation of German Industries (BDI) appears to have used support for a global carbon price to advocate for weaker EU regulations in a new position paper, arguing against a rapid phase-out of free emissions allowances in the EU ETS due to carbon leakage concerns. The position paper described the current EU CBAM proposal as vague but advocated for export rebates. The association also advocated for an expansion of fossil gas power in Germany alongside a doubling of renewable energy, on the basis that the fossil gas power stations should be “H2-ready”.

Eurometaux call for solutions to increasing electricity price

30 September 2021

Eurometaux wrote a letter to EU Commission policymakers last week supporting full indirect cost compensation in the EU Emission Trading System and using the Market Stability Reserve to limit carbon prices to respond to the high costs of electricity in the EU. However, the association also suggested that a solution to the increasing electricity prices would be to ensure sufficient access to carbon-free electricity.

Power sector trade groups welcomed EU's Fit for 55

26 July 2021

Several power sector trade groups welcomed the EU’s Fit for 55 climate legislative package. Eurelectric launched a new Fit for 55 webpage, in which the association stated strong support for legislative measures, including EU ETS reforms, and revisions to the Renewable Energy Directive and Energy Taxation Directive. Similar supportive views were also shared from WindEurope and SolarPower Europe.