Central Europe Energy Partners’  Position Paper on ETS reform  (Directive 2003/87/EC)

Central Europe Energy Partners’ Position Paper on ETS reform (Directive 2003/87/EC)

1. Introduction The Paris Agreement has shown that the EU’s proposal to decrease CO2 emissions by 40% by 2030, from 1990 levels, was the most ambitious pledge made at the Summit. This means that the other industrialised countries, such as the US, Canada and Australia, are lagging behind the EU’s ambitions, as well as the emerging powers, notably China and India. If we translate the pledges into emissions per tonne per capita, then in 2030, we can expect below 5.0 tonnes in the EU, whilst in the US nearly 12 tonnes. Why should we be so ambitious and accept a constant loss of competitiveness and not fulfill one of the basic principles of the Lisbon Treaty, which states, that the EU should implement policies ensuring advances in economic integration? As Eurostat shows, the distance between the EU-15 and EU-11 (GDP per capita), has practically not changed during the last 10 years. As figures indicate , a 1% increase of GDP per capita in the EU-15 is equal to 3.1 % in the EU-11. If the ratio is 1% to 4%, the chance to catch-up will take 40 years. This is our real European problem requiring immediate attention, as new investments are desperately needed in the EU-11. The revision of the EU Emissions Trading Scheme (ETS) is highly important for the Central European energy-intensive industries ( steel, chemical, refining, etc) and crucial in determining how the EU aims to combine its agenda on growth, jobs and investments with climate and environmental policies. For example, in its current form, the proposal puts at risk the viability of the steel industry in [...]