2030 Energy and Climate Package

In response to the EU Council’s conclusions on the 2030 Climate and Energy package, the European aluminium industry welcomes the confirmation that measures to stop investment leakage will continue after 2020.

Director-general of the European Aluminium Association (EAA) Gerd Götz syas, “Today, EU Heads of state and government sent a clear signal that high energy costs in Europe must be addressed in the post-2020 era. In particular, we strongly welcome the Council’s commitment to address indirect carbon costs. These costs are six times higher than direct carbon costs for the aluminium industry and have already cost Europe more than a third of its aluminium production and seriously impacted the entire value-chain. The EU is now import-dependant for a material that is essential to all innovative, sustainable and low-carbon solutions. What is crucial now is for EU leaders to ensure rapid deployment of effective compensation for these costs under a reformed ETS.”

Last year the European Commission’s Fitness Check of the aluminium industry found that EU climate and energy rules add 11 per cent of total production costs. Competitors outside Europe did not have to deal with this. As a result, the aluminium industry is prone to carbon and investment leakage and production continues to leave Europe despite growing demand. Since 2007 almost 50% of aluminium smelters in Europe have closed or seen their activities reduced.

“We hope that this step forward confirms a shift in political priorities towards finally correcting fundamental flaws in the current legislative framework. In addition to being a driver of sustainable economic growth, with demand in Europe expected to almost double by 2050, aluminium is vital for lightweight and fuel-efficient vehicles, energy-efficient buildings, and environmentally-friendly packaging. It is a shining example of how industrial growth and climate objectives can be mutually-reinforcing, a fact which should be reflected in all areas of EU policy,” Mr Götz added.

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