Eurofer criticises the approval of backloading (removal) of emission allowances by the European Parliament

“The decision will needlessly increase energy cost for the European steel industry and the industry in general at a time of crisis,” says Gordon Moffat, Director General of the European Steel Association. “It is time to stop piecemeal interventionism and think about a stable framework for growth in Europe. Globally competitive energy costs are part of this.”

According to today’s decision of the EU parliament, 900 million carbon emission allowances will be taken out of the market with the aim of increasing prices for the certificates traded within the EU Emissions Trading Scheme (ETS). This proposal from the European Commission had already been rejected by the European Parliament in April this year. Today, the Parliament voted again on the proposal, limiting the amount of certificates which may be withheld to 900 million and allowing only one such adaptation of the ETS.

Eurofer believes that the measure does not improve the functioning of the ETS trading scheme.

“It is a fact that backloading is not necessary for reaching the ETS targets. Today’s decision represents unnecessary interference in a market-based system. It once more undermines confidence in the policy framework, which is so urgently needed for investment.”, said Gordon Moffat.