Aluminium sees “glass half full” after ETS trilogue compromise

Brussels, 10 November 2017 - EU negotiators yesterday agreed on a package of revised proposals for the Emissions Trading System phase four (2021-2030), including indirect carbon cost compensation. While governments will be allowed to compensate for such costs in a more transparent way, national compensation will ultimately depend on the upcoming revision of the state aid guidelines on CO2 indirect costs compensation.

Aluminium cans | Photo credit: Fotolia

By European Aluminium

10 Nov 2017


“If you ask me how our industry sees the glass, I would not hesitate to say half full. European Aluminium compliments the EU institutions on the deal reached yesterday, which addresses some of the challenges our industry faces. However, more has to be done to ensure adequate and predictable levels of indirect carbon compensation for our industry. We look forward to supporting the implementation of the next ETS phase”, commented Gerd Götz, European Aluminium’s Director General.

Since the adoption of the ETS proposal in July 2015, European Aluminium has been the leading voice for an equal treatment between direct and indirect carbon costs in the ETS system. Reliable studies demonstrate that indirect carbon costs are up to seven times higher than direct costs for the aluminium primary industry, hindering the global competitiveness of this sector.

“Striking the balance between sustainability and competitiveness was not easy for both decision makers and industry. Two trilogue meetings ending at 4 AM in the morning confirm the complexity of the dialogue and the many issues at stake. The determination of Rapporteur Girling, ENVI Chairwoman Valean, the Commissioner for Energy Cañete and the Estonian EU Presidency was critical to finally ensure a compromise. While the carbon leakage regime for direct emissions has been improved, we would like to strongly encourage decision-makers to keep working hard and stay coordinated because the next critical battle will start soon with the state aid guidelines revision. The state aid reform for indirect CO2 compensation will determine whether this predictability for CO2 compensation will be secured or undermined”, concluded Götz.