Of Thanks to Floudopoulos
The Commission’s proposals for the emissions trading scheme and the CBAM adjustment mechanism undermine the industry’s ability to make green investments and derail the transition to green coal production in Europe.
This is emphasized by a letter signed by 56 CEOs of the largest European steel companies, including 3 representatives of Greek steel companies. ArcelorMittal, Thyssenkrupp, Riva Group, Outokumpu are some of the steel companies that sign the letter.
From the Greek side, the letter is signed by the CEO of SIDENOR G. Michos, the CEO of the Hellenic Steelworks V. Goumas as well as the president of the Hellenic Steelworks Association (ENHE) N. Georgakellos.
More specifically, the letter states that the European steel industry is a strategic area for the EU’s green transition, economic resilience and independence.
The industry has clear plans and concrete projects to reduce CO2 emissions by at least 55 percent by 2030 and to achieve climate-neutral steel production in the European Union by 2050.
These commitments represent a truly industrial revolution that requires a € 30 billion investment in cutting-edge technologies over the next eight years and a significant increase in operating costs from the use of coal-fired electricity and hydrogen.
However, according to the letter, European lawmakers are considering proposals for the EU Emissions Trading Scheme (ETS) and the Carbon Boundary Adjustment Mechanism (CBAM) that undermine investment capacity and derail the transition to green steel production in Europe.
According to steelmakers, these proposals weaken the protection of industry from the risk of carbon leakage in domestic and international markets, favoring competitors who are not subject to corresponding coal costs.
In Europe in particular, the allocation rules will be reduced by about 40%, because a factory that was not previously in the scope will set prices that no company can achieve in three years.
This is due to the transition from the system of free allocation and indirect compensation of carbon costs to a CBAM that has not yet been tested. Bypassing and shifting resources are just some of the risks that could undermine the effectiveness of CBAM.
In addition, no measures are envisaged to maintain the 20 million tonnes of EU steel exports worth up to € 45 billion and creating 30,000 directly dependent jobs.
Steelmakers also point out that these proposals remove mass emissions rights from the market, and are expected to lead to a further increase in coal and electricity prices in Europe, at a time when businesses and households are struggling with energy costs. launched and with inflation.
In their letter, the 56 steel CEOs call on the European Parliament and the Council of the EU to address these concerns, in particular:
Avoid further reduction of carbon leakage protection until the CBAM mechanism proves effective and an export solution is found.
To prevent the abrupt reduction of the free allocation of emission allowances for existing steelworks that would result from the modification of the reference field.
Instead, low-carbon technologies should be rewarded without prematurely lowering reference prices, at least in the first years that such technologies are introduced on an industrial scale.
The changes in the emissions trading system (ETS and CBAM) proposed by the steel companies will enable the transformation of green steel in the EU. Its investments will greatly benefit the climate and the industrial competitiveness of the EU and will maintain hundreds of thousands. jobs across the EU, the letter concludes.
The CEOs who sign the letter are in detail:
Geert Van Poelvoorde, CEO, ArcelorMittal Europe
Bernhard Osburg, CEO, thyssenkrupp Steel Europe AG
Henrik Adam, Chairman of the Board, Tata Steel Netherlands Holding
Francesc Rubiralta Rubio, President and CEO, CELSA Group
Olavi Huhtala, CEO, SSAB Europe
Mario Caldonazzo, CEO, Arvedi
Hubert Zajicek, CEO, voestalpine Steel Division
Lorenzo Riva, CEO, Riva Group
Gunnar Groebler, CEO, Salzgitter AG
Timoteo Di Maulo, CEO, Aperam
Karl-Ulrich Köhler, Chairman of the Board, SHS-Stahl-Holding-Saar Gmbh & Co
Ajay Aggarwal, Executive President of Europe, Liberty Steel Group
Heikki Malinen, President and CEO, Outokumpu Oyj
Jan Czudek, CEO, Třinecké áelezárny
José Enrique Freire Arteta, President, Megasa
James E. Bruno, President, US Steel Košice
Hans Jürgen Kerkhoff, President, Wirtschaftsvereinigung Stahl
Bernardo Velázquez Herreros, President, UNESID – Spanish Steel Association
Zlatislav Ivkov, General Manager, Stomana Industry SA
Markus Ritter, CEO, Marienhütte Stahl & Walzwerk GmbH
George Michos, CEO, Sidenor Group
Vasileios Goumas, CEO, Hellenic Steel
Markus Menges and Florian Glück, General Managers, Badische Stahlwerke GmbH
Roberto Re, CEO, Metinvest Europe
Radek Strouhal, CEO, Vítkovice Steel
Giuseppe Pasini, President, Feralpi Group
Claudio Riva, President, Riva Acciaio
Alessandro Banzato, CEO, Acciaierie Venete
Antonio Marcegaglia, President and CEO, Marcegaglia Steel
Giuseppe Lucchini, President, Lucchini Rs
Michele Della Briotta, President of Europe, Tenaris
Klaus Enwald, CEO, Ovako Imatra Oy Ab
Alexander Becker, CEO, GMH Gruppe
José Jainaga, CEO, Sidenor Aceros Especiales
Carlos Alvarez, CEO, Aceros Inoxidables OLARRA, SA
Andrey Zubitskiy, Chairman of the Board, SIJ Group
Francisco Irazusta, Executive Chairman of Tubos Reunidos SA
Christian Wiethüchter, CSO | COO, BENTELER Steel / Tube GmbH
Nicos Georgakellos, President, ENXE – Hellenic Steel Association
Ionel Bors, President, UniRomSider – Romanian Steel Producers’ Union
Stefan Dzienniak, Chairman of the Board, HIPH – Polish Steel Association
Roman Stiftner, General Manager, Austrian Mining and Steel Association
Ivan Jurkošek, General Manager, Steeltore Steel
Annika Roos, General Manager, Jernkontoret
Kimmo Järvinen, General Manager, Metallinjalostajat
Philippe Coigné, General Manager, Groupement de la Sidérurgie
Bruno Jacquemin, Délégué Général, A3M
Daniel Urban, President, Ocelářská unie
Anton Petrov, Chairman of the Board, Bulgarian Association of the Metallurgical Industry
Ianc Petru, Executive Director, UNITUB – General Union of Romanian Tubes Producers
Michel Tellier, CEO, Reinosa Forgings & Castings
Timo Rautalahti, CEO, Boliden Harjavalta
François Michalet, General Secretary, ESTA – European Steel Tube Association
Alexis Van Maercke, General Secretary, APEAL
Klaus Peters, General Secretary, ESTEP – European Steel Technology Platform
Axel Eggert, Director General The European Steel Association (EUROFER)
Source: Capital
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