Climate & energy / EU Emissions Trading Scheme :

EU Emissions Trading Scheme

In brief

The EU Emissions Trading System (EU-ETS) is seen as a cornerstone of the European Union's policy to combat climate change. The EU ETS works on the 'cap and trade' principle. Within the cap, companies receive or buy emission allowances which they can trade with one another as needed. After each year a company must surrender enough allowances to cover its emissions. We are currently in Phase III of the EU-ETS, which runs from 2013-2020.  Phase IV of the EU-ETS, which will apply post-2020, is now being debated at EU level. So far, the European Commission has published its proposal for reviewing the Directive (July 2015).  On 15 February 2017, the European Parliament adopted a report which outlines its views on the Commission's proposal and the Council adopted its general approach text on 28 February. The trilogue kicked off on 4 April.

Our view

In a nutshell, the cement industry views on Phase IV of the EU-ETS are as follows:

  • EU-ETS sectors already contribute proportionately more to the overall EU reduction target than non-ETS sectors. Therefore, the 43% reduction objective and the 2.2% linear reduction factor for phase IV should not be further increased.
  • All energy-intensive industries must be on the carbon leakage list, with all installations receiving free allocation based on ambitious, but realistic, benchmarks.
  • Free allocation should be aligned with actual production, to avoid so-called windfall profits.
  • There should be no cross-sectoral correction factor as this would not respect the European Council Conclusions of October 2014 that require no undue costs for the best performer.
  • No differentiation should be made between sectors. CEMBUREAU is firmly opposed to both the tiering of free allowances and the cross-sectoral correction factor .
  • In order to allow for sufficient free allowances at the level of the best performer, the auctioning/free allowances share proposed by the European Commission (57/43% respectively) needs to be revised in favour of an increase in the free allowances available.
  • More support needs to be provided for innovation in energy-intensive industries. Furthermore, the focus should cover the whole range of low carbon technologies including industrial carbon capture and utilisation (CCU). The Innovation Fund should be fully financed from the auctioning share.
EU ETS Phase IV CSCF application
Ecofys study
Innovation in the cement industry
Cement industry case studies
Flaws of the Tiered Approach
Alliance for a #FairETS position

Climate & energy / Energy: Winter Package :

Energy: Winter Package

In brief

The “Clean Energy For All Europeans” package, more commonly referred to as the “Winter Package”, consists of numerous legislative Proposals together with accompanying documents and aims at further completing the internal market for electricity and implementing the Energy Union.  View the Communication and press release on the Winter Package.  The Winter Package contains the following legislative Proposals:

Our view

In a nutshell, the cement industry's views on the Winter Package are as follows:

  • The package will help to deliver cost competitive energy prices.
  • Consistency between policy measures should be ensured. From that perspective, an exclusion of EU Emissions Trading Scheme (EU-ETS) sectors from article 7 of the Energy Efficiency Directive should be considered in order to avoid double regulation. Also, the EED should not set a binding EU cap on energy consumption.
  • Renewable energy support schemes should not hamper access to biomass from waste for co-processing.
  • In terms of measuring energy consumption, Member States should have the choice to express their national contribution in primary or final energy.
Clean Energy for all
AEII Position Paper

Climate & energy / Low carbon economy :

Low carbon economy

In brief

The European Commission’s “Roadmap for moving to a competitive low-carbon economy in 2050” suggests that, by 2050, the EU should cut its emissions to 80% below 1990 levels through domestic reductions alone. It also sets out milestones which form a cost-effective pathway to this goal - reductions of the order of 40% by 2030 and 60% by 2040. It shows how the main sectors responsible for Europe's emissions, including industry, can make the transition to a low-carbon economy most cost-effectively.

Our view

CEMBUREAU outlined its vision of what the cement industry could potentially achieve in “The role of cement in the low carbon economy”.  According to the vision, the cement carbon footprint could be reduced by 32% compared with 1990 levels, using mostly conventional means. Subject to specified policies and technological prerequisites, a potential reduction of up to 80% may be envisaged by the application of emerging new technologies, such as carbon capture.

Role of cement in the 2050 low carbon economy
Cement industry 2050 roadmap
Innovation in the cement industry
Case studies & projects