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.

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.

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:

• Proposal for a recast of the Internal Electricity Market Directive
• Proposal for a recast of the Internal Electricity Market Regulation
• Proposal for a recast of the ACER Regulation
• Proposal for a Regulation on Risk-Preparedness in the Electricity Sector and Repealing the Security of Supply Directive
• Proposal for a recast of the Renewable Energy Directive
• Proposal for a revised Energy Efficiency Directive
• Proposal for a revised Energy Performance of Buildings Directive
• Proposal for a Regulation on the Governance of the Energy Union.

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.