Emissions Trading System

Our industry's opinion on ETS reform

The ETS Phase IV reform is an ideal opportunity to define a better-balanced and more predictable long-term regulatory framework for energy, climate and competitiveness.

Our industry recognises ETS as a cornerstone of European climate change policy. Implemented well, it will provide the most effective – and cost-effective - way to reduce carbon emissions. A robust ETS reform is also vital in letting us deliver the targets agreed during the Paris COP21 climate change conference in December 2015.

What we hope the reform will deliver

  1. Our main expectation is to benefit from a predictable and effective compensation system for indirect carbon costs.
  1. Benchmarks should be revised periodically, based on actual historic performance.
  1. Direct and indirect compensation mechanisms should be treated equally. They should be based on actual production and realistic benchmarks. They should exclude unrealistic automatic reduction factors based on caps, availability of allowances, etc.
  1. The principal criteria for eligibility for carbon leakage protection should be the sectors’ emission and electricity intensity and its ability to pass on costs into product prices.

Clean Energy Package: our position and recommendations 

European Aluminium welcomes the principles and political aspirations embedded into the legislative proposals “Clean energy for all Europeans”, adopted last year.
We fully understand the importance of defining legislative frameworks to empower energy consumers, integrate electricity markets and manage the penetration of Renewable Energy Sources (RES) into the European grids. Our industry is proactively contributing to such goals through our product applications, infinite recyclability and the stabilisation of the grid through demand-response mechanisms.

Read our position paper >

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