New emission standards threaten steel production and jobs - EUROFER

The European Steel Association (EUROFER) has severely criticized the European Commission's proposed changes to the emission trading (EU ETS) of the European Union. According to EUROFER, even the most efficient European steel mills will experience excessive additional costs that their global competitors will not have. This proposal is at odds with the European Commission's goals of increasing jobs and investment in order to achieve global results.

“The aim of the EU ETS is to reduce the climate impact of economic activities in Europe,” said EUROFER CEO Eggert, adding that he is concerned that some changes threaten the competitiveness of the European steel industry. “We believe that tools to strengthen environmental performance should not put European jobs and prosperity at risk,” Eggert concluded.

EUROFER hopes to adjust the proposed changes to fully offset the direct and indirect costs of carbon at the level of the most efficient steel mills in Europe, which are subject to fierce global competition and high risk of gas leaks.

In the European steel industry, employment fell by 20 percent and demand for metal products fell 25 percent from pre-crisis levels. Failure to make the necessary adjustments "will deal another major blow to our industry," Eggert said to policymakers and urged to take this threat seriously and not ignore "clear impacts or expected consequences for the EU steel industry."

Other industries have also raised concerns. Gerd Goetz, CEO of European Aluminum, said the proposals were not justified in terms of restoring global competitiveness and ignored the consensus of all 28 member states and the European Parliament on EU compensation for indirect costs of ETS.

A spokesman for the German Chemical Industry Association, said: "In 2014, the European Council decided that the most efficient industrial plants should not be burdened with any future ETS costs."