December 2008 saw the culmination of intense negotiations with the political agreement on the new ETDi (Emission Trading Directive) between the European Council and the European Parliament being achieved. The outcome resulted in the best achievable compromise following all the efforts of CEMBUREAU on an issue which filled the Association’s calendar in 2008.
The climate-energy legislative package containing measures to fight climate change and promote renewable energy was adopted by Council on 6 April 2009. The package includes the Directive to revise rules for the EU Emission Trading System (ETSi) for its third trading period from 2013 to 2020, which was published in the Official Journal on 5 June 2009. It also includes an “effort-sharing” decision setting national binding greenhouse gas reduction targets for non-ETS sectors in each Member State, to be met by 2020 from a 2005 baseline; a Directive promoting carbon capture and storage (CCS); a Directive to ensure renewable energy makes up at least 20% of the EU’s total energy consumption by 2020; a Regulation setting binding greenhouse gas emission limits for new passenger cars, to be phased in from 2012 to 2015 and a Directive revising existing fuel quality rules and introducing a binding target for greenhouse gas emission cuts from road fuels by 2020.
Latest news:
Commission publishes ETS factsheet on delivery of emission cuts
Between 2005 and 2010 the European cement industry has cut its specific CO2 emissions by an average of 23% per installation, compared to an average 8% cut in the overall EU Emission Trading Scheme (ETS). Read more
Commission adopts Decision on calculating free allocation of emission allowances
A Decision on how free emission allowances should be allocated to industrial installations covered by the EU Emissions Trading System (EU ETSi) from 2013 has been adopted by the European Commission. While auctioning will become the main principle for allocating allowances as of 2013, free allowances will still be given to industry until 2020, notably those deemed to be exposed to carbon leakage. Read more
Consultation on future Guidelines for State aid in the context of EU ETS launched
The European Commission has invited Member States, citizens, companies and organisations to contribute to a consultation on future Commission Guidelines for State aid in the context of the amended EU Emissions Trading Scheme. Contributions are particularly sought from environmental-related organisations, industry associations subject to the EU ETSi, associations, national and regional authorities. The consultation, which opened on 11 March 2011, will stay open until 11 May 2011.
Allocation rules
As the EU institutions are scrambling to meet the end-of-year deadline for the adoption of the benchmarks and allocation rules applicable to the free allocation of EUAs, the attention of most stakeholders, including industry, is essentially focused on the allocation process. The anxiety is palpable as everyone is asking: shall I have enough allowances to continue operate in the EU or not?
The proposed allocation rules come and will apply at a time when the EU manufacturing industry - particularly the cement industry - is struggling to recover from the financial and economic crisis. The start of the crisis took operators by surprise in the middle of an investment phase and, consequently, with a high gearing. In mature markets, such as the EU’s, the way out of the recession obviously has to go through a debt reduction and cost cutting exercise. In such context, it is vital that operators be given maximum flexibility to adjust production capacity to demand. This is also a unique opportunity to move production from less efficient installations to the most efficient plants, a capacity rationalisation that obviously goes hand in hand with the objective of reducing CO2 emissions. Read more
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