Eurometaux urges EU action to cut energy costs, protect industry
Eurometaux, the European non-ferrous metals association, has released a letter to the European Council regarding measures to restore the competitiveness of European industry and safeguard the wider economy.
The letter states, “The only viable path to rebuilding competitiveness is to ensure globally competitive production costs, starting with secure and affordable access to renewable and low-carbon energy.”
It calls on the European Council and the member states to urgently commit to the following measures, particularly in the context of 2040 framework discussions:
- Immediately address the high cost of energy for Energy-Intensive Industries (EIIs), such as considering Eurometaux’s proposal for a price shock absorber
- Ensure sufficient funds are allocated to indirect carbon costs compensation to provide adequate carbon leakage protection, which must remain unaffected by the addition of new sectors
- Extend indirect cost compensation beyond 2030; for aluminium and ferro-alloys as Carbon Border Adjustment Mechanism (CBAM) sectors – keep indirect emissions outside CBAM scope
- Facilitate access to globally competitive electricity through targeted support, including profile matching costs for renewable energy sources, guarantee schemes for power purchase agreements (PPAs), and allocating a significant share of Contracts for Difference output to PPAs with electro-intensive industries – as recommended by Draghi Report
- Ensure CBAM becomes an effective and predictable carbon leakage protection system, incorporating export provisions, robust anti-circumvention measures, and the closure of all identified loopholes
- Make the EU ETS a driver of both decarbonisation and economic resilience through greater compliance flexibility
- Avoid undue direct and indirect carbon costs that lead to carbon leakage
- Reduce regulatory and market costs for NFM facilities by cutting network charges, flexibility costs, taxes, renewable levies, and other policy-imposed costs borne by EIIs
- Thoroughly implement these measures at national level
The final letter is available here. It has been sent to President António Costa and his cabinet, as well as to all twenty-seven ambassadors. Eurometaux collected a total of forty-three endorsements (including its own).
