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.
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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).
