“Member States have sent the strongest signal to date of the need to address unsustainable energy costs that are crippling energy-intensive industries in Europe” said Gerd Götz, director general of the European Aluminium Association. “EAA welcomes the Member States’ call to develop measures to prevent investment leakage and provide long-term policy planning. The aluminium industry calls for robust compensation measures to relieve electro-intensive industries from the extra costs of climate policies embedded into energy prices that global competitors do not face. In particular, this should be addressed through free allocations for ETS direct costs and the establishment of an EU-wide mechanism for its indirect costs. These measures will play a decisive role in creating the conditions for a true industrial renaissance in Europe. It is therefore essential that the next Commission answers the Council’s call to restore industrial competitiveness” he added.
This acknowledgement follows a European Commission report which demonstrates that EU climate and energy policies have a significant impact on the global competitiveness of aluminium production in Europe. Plant closures and curtailments have already led to a drop in production capacity of more than one third between 2007 and 2012, despite consistent and growing demand in Europe for aluminium products and the innovative, resource-efficient solutions they provide.
More information: EAA factsheet - Key findings of the CEPS Cumulative Cost Assessment of EU rules