While the German cement industry supports the EU-ETS reform, it warns that the current framework is insufficient. Discover the key adjustments demanded for a successful transition to climate neutrality.
Key Takeaways
- The German cement industry endorses the EU-ETS reform but demands adjustments for effective climate neutrality transition.
- A credible decarbonisation framework beyond 2030 is necessary to ensure investment security and alignment with the EU’s 2050 targets.
- The industry advocates for a strong Carbon Border Adjustment Mechanism to prevent carbon leakage and minimize loopholes.
- Revenue from EU-ETS and CBAM should fund decarbonisation projects, especially Carbon Capture, Utilisation, and Storage technologies.
- Incentives are needed to boost demand for CO2-efficient cement, along with simplifications in CO2 verification processes.
The German cement industry supports the reform of the EU Emissions Trading System (EU-ETS), viewing it as a central instrument for achieving climate neutrality objectives. However, in a policy statement, it is calling for several adjustments to the framework to ensure a viable transition. The industry states that the current conditions are insufficient and significantly hinder the transformation to climate neutrality.
A Reliable Framework For Decarbonisation
A key demand is the creation of a clear, realistic, and reliable framework for decarbonisation beyond 2030 to provide investment security. The industry argues that any changes should be transparent and occur within the regular revision process. Furthermore, it calls for the ETS reduction path to be aligned with the EU’s 2050 climate neutrality target. This would allow more time for the industrial transformation and ensure that emission certificates remain available beyond 2040.
Effective Carbon Leakage Protection
The industry advocates for a robust Carbon Border Adjustment Mechanism (CBAM) to function as an effective instrument against carbon leakage. It supports a gradual transition to CO2 pricing for imported products covered by the CBAM. The mechanism must be designed to minimise loopholes to ensure the system’s credibility. The external prerequisites for decarbonisation, such as CO2 infrastructure, green energy, and financing instruments, should be reviewed regularly and adjusted if necessary.
Targeted Use Of Revenue And Innovation
A central request is that revenues from the EU-ETS and CBAM should be specifically allocated to decarbonisation projects. This applies in particular to the advancement of Carbon Capture, Utilisation, and Storage (CCUS) technologies and the development of CO2 infrastructures. The industry also sees a need for rules on accounting for negative emissions and the use of CO2 to be integrated into the EU-ETS in a timely manner.
To strengthen the market for climate-friendly products, incentives should be created to increase demand for CO2-efficient cement and concrete. This could be achieved through reforms of EU public procurement law and national measures. The industry also calls for a simplification of the complexity and effort involved in CO2 verification, especially for small material flows.
Leave a Reply