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IAA PortNews is not the author of this article and the editorial opinion can differ from that of the author.

IAA PortNews is not the author of this article and the editorial opinion can differ from that of the author.

  • Источник: https://www.politico.eu

    2022 May 30

    EU proposals on Emissions Trading and Carbon Border Adjustment derail the green transition

    The European steel industry is a strategic sector for the EU’s green transition, economic resilience and independence. We have clear plans and concrete projects to reduce our sector’s CO2 emissions by at least 30 percent by 2030 and to achieve climate-neutral steel production in the European Union by 2050. These commitments represent a truly industrial revolution that requires a massive €30 billion capital investment in breakthrough technologies over the coming eight years and a significant increase in operational costs stemming from the use of decarbonized electricity and hydrogen.

    However, European legislators are now considering proposals on the EU’s Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) that undermine our capacity to invest in these projects and derail the transition to green steel production in Europe.

    In Europe, new allocation rules will suddenly reduce the main CO2 benchmark by around 40 percent.

    The proposals weaken carbon-leakage protection of our industry in the domestic and global markets, favoring international competitors which are not subject to equivalent carbon costs. In Europe, new allocation rules will suddenly reduce the main CO2 benchmark by around 40 percent — because of one plant that was previously not in the scope — and set a value which no company can achieve in just three years. This is due to a premature transition from the free allocation and indirect cost compensation system to a CBAM which has not yet been tested. Circumvention and resource shuffling are only a few of the many risks that could undermine the CBAM’s effectiveness. Moreover, the CBAM does not yet foresee any measure to preserve the EU’s 20 million metric tons of steel exports per year, worth €45 billion, and the 30,000 jobs that are directly dependent on these.

    The proposals also remove massive allowances from the market, further driving the carbon and electricity price in Europe at a time when businesses and households are struggling with skyrocketing energy costs and inflation. Finally, they fail to capture the much higher carbon footprint of stainless steel imports derived from the embedded alloying elements.

    Avoid further scaling back existing carbon-leakage protection until the CBAM has proven its effectiveness and a solution for exports is in place.

    We call on the European Parliament and Council to immediately address these concerns and in particular to:
    ● Avoid further scaling back existing carbon-leakage protection until the CBAM has proven its effectiveness and a solution for exports is in place.
    ● Prevent a sharp decrease in free allocation for existing steel plants which would result from a modification of the benchmark scope. Instead, low-carbon technologies must be rewarded without reducing prematurely benchmark values, at least in the first years when such technologies are introduced at an industrial scale.

    The aforementioned changes to the ETS and CBAM will allow us to make the green steel transformation happen now within the EU.

    Our investments will greatly benefit climate protection, the EU’s industrial competitiveness and hundreds of thousands of jobs across the EU.

    Geert Van Poelvoorde, CEO, ArcelorMittal Europe
    Bernhard Osburg, CEO, thyssenkrupp Steel Europe AG
    Henrik Adam, Chairman of the Board, Tata Steel Netherlands Holding
    Francesc Rubiralta Rubio, Chairman and CEO, CELSA Group
    Olavi Huhtala, CEO, SSAB Europe
    Mario Caldonazzo, CEO, Arvedi
    Hubert Zajicek, CEO, voestalpine Steel Division
    Lorenzo Riva, CEO, Riva Group
    Gunnar Groebler, CEO, Salzgitter AG
    Timoteo Di Maulo, CEO, Aperam
    Ajay Aggarwal, President of the Board, Liberty Galati
    Heikki Malinen, President and CEO, Outokumpu Oyj
    Jan Czudek, CEO, Třinecké železárny
    Bernardo Velázquez Herreros, President, UNESID – Spanish Steel Association
    Carlos Gil Robles, Administrator, Megasa
    Hans Jürgen Kerkhoff, President, Wirtschaftsvereinigung Stahl
    James E. Bruno, President, US Steel Košice
    Zlatislav Ivkov, General Manager, Stomana Industry S.A.
    Markus Ritter, CEO, Marienhütte Stahl & Walzwerk GmbH
    George Michos, CEO, Sidenor Group
    Vasileios Goumas, CEO, Hellenic Halyvourgia
    Markus Menges and Florian Glück, Managing Directors, Badische Stahlwerke GmbH
    Radek Strouhal, CEO, Vítkovice Steel
    Giuseppe Pasini, President, Feralpi Group
    Claudio Riva, President, Riva Acciaio
    Alessandro Banzato, CEO, Acciaierie Venete
    Antonio Marcegaglia, President and CEO, Marcegaglia Steel
    Giuseppe Lucchini, President, Lucchini Rs
    Michele Della Briotta, President Europe, Tenaris
    Francisco Irazusta, Executive Chairman, Tubos Reunidos SA
    Nicos Georgakellos, President, ENXE – Hellenic Steelmakers Union
    Ionel Bors, President, UniRomSider – Romanian Steel Producers’ Union
    Stefan Dzienniak, President of the board, HIPH – Polish Steel Association
    Roman Stiftner, Managing Director, Austrian Mining and Steel Association
    Ivan Jurkošek, General Manager, Štore Steel
    Annika Roos, Managing Director, Jernkontoret
    Kimmo Järvinen, Managing Director, Metallinjalostajat
    Philippe Coigné, Director General, Groupement de la Sidérurgie
    Bruno Jacquemin, Délégué Général, A3M
    Daniel Urban, Chairman, Ocelářská unie
    Anton Petrov, Chairman of the Board, Bulgarian Association of the Metallurgical Industry
    Caterina Epis, Institutional Relations Director, Tenaris
    Ianc Petru, Executive Manager, UNITUB – General Union of Romanian Tubes Producers
    Michel Tellier, CEO, Reinosa Forgings & Castings
    Timo Rautalahti, CEO, Boliden Harjavalta
    Klaus Peters, Secretary General, ESTEP – European Steel Technology Platform
    Axel Eggert, Director General, The European Steel Association (EUROFER)