We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The European Non-ferrous Metals Association (Eurometaux) appears to be highly engaged on climate policy in the EU and takes broadly negative positions on climate change policy. The association engages negatively on key policies such as the EU Emissions Trading System (EU ETS) and the EU’s proposed Carbon Border Adjustment Mechanism (CBAM), but has become more positive on top-line climate ambition since 2018.
Top-line Messaging on Climate Policy: Eurometaux takes mixed positions on climate policy in its top-line messaging, stressing concerns regarding impacts on international competitiveness of EU industry. In a joint statement of EU Energy Intensive Industries (EII) in February 2022, the association supported the EU’s goal of climate neutrality by 2050, but stressed the risks of unilateral action on climate by Europe on carbon leakage and international industrial competitiveness. In the same joint statement, Eurometaux supported the EU’s Fit for 55 package. However, in a letter to EU policymakers in May 2021 Eurometaux Director General Guy Thiran stated that a regulatory framework to respond to climate change must preserve EU industry’s international competitiveness and stressed the risk of carbon leakage.
Engagement with Climate-Related Regulations: Eurometaux does not appear to support ambitious climate policy in the EU. In February 2022 in a joint statement from EU energy-intensive industries, the association suggested that the EU’s unilateral increase of its 2030 climate ambition would cause carbon leakage and negatively impact EU industry competitiveness. In a November 2021 response to an EU public consultation, Eurometaux supported some reforms to the EU ETS to strengthen mechanisms such as the Linear Reduction Factor, albeit with major exceptions. For example, it supported the Linear Reduction Factor as the sole mechanism to gradually phase down the ETS cap, and advocated to strengthen carbon leakage protection measures, such as the free allocation of emissions allowances. Furthermore, in a joint statement in February 2022, Eurometaux did not support reforms to tighten the Market Stability Reserve. In the same joint statement, the association supported the EU’s CBAM alongside the continuation of current carbon leakage protection measures in the EU ETS, such as the free allocation of emissions allowances until at least 2030. In the statement it also advocated for the inclusion of export rebates, a position which is misaligned with the EU Commission. The association has consistently opposed the inclusion of indirect emissions in the CBAM in leadership messaging and directly to policymakers in 2020-22.
In a position paper published in December 2021, Eurometaux did not support including binding energy efficiency standards in the Industrial Emissions Directive, and advocated that GHG emissions should not be regulated under the initiative to avoid double regulation of emissions under the EU ETS. In an October 2021 press release, the association advocated for government support for power purchase agreements for carbon free electricity to enable industry to decarbonize. However, in a joint position paper by the Alliance for Energy Intensive Industries in December 2020, the association advocated for exemptions for industry from renewable energy levies and supporting capping aid for renewable energies.
Positioning on Energy Transition: Eurometaux appears to mostly support the transition of the energy mix, with some exceptions. In July 2021, the Director General was supportive of the decarbonization of the metals industry with carbon-free electricity, and advocated for a framework for renewable hydrogen. However, in response to an EU consultation in April 2020, Eurometaux supported the maintenance of tax-reductions for energy used in industrial processes for energy-intensive industry.