Europe’s Energy and Climate Change Policy

A crucial EU competitiveness issue

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A new Climate Change Agreement – December 2015

Many questions are still to be answered after the agreement:  Will it set the right signals for investors? Will there be a US ratification of the Paris Agreement without congressional approval? What implications will it have for the EU’s 2030 climate target? Will there be a mechanism to address the fact that the EU has higher costs for industry that can result in investment and carbon leakage? Will there be initiatives to develop international carbon markets?

The EU’s policy on the Energy Union

The downstream users of energy are concerned that the strong political signal will in turn result in an even weaker energy infrastructure and higher prices.  Without accompanying measures it also increases the environmental and health and safety risks since needed investments will be redirected.

Energy efficiency - Stakeholder consultation

The EU has already achieved a high energy efficiency rate. However, if further improvements are to be made it will only come through two axes; technology and consumer behaviour.

ETS revision - Stakeholder Consultation

On 14 January 2016 the COMMISSION STAFF published its WORKING DOCUMENT on STAKEHOLDER FEEDBACK on the revision of the Directive 2003/87/EC to enhance cost-effective emission reductions and low-carbon investments.

The ETS revision and the increasing pace of emission reduction

Sectors that are at risk relocating their investments or closing in light of the increasing energy costs in the EU because of the pass-on costs for CO2 allowances from energy suppliers are currently on the so-called Carbon Leakage List and are concerned that the proposed revision of the Directive will threaten their status and thus their competitiveness.

Assessment of Trade and Emissions intensity

Process emissions are particularly significant for magnesia since CO2 is the result of the chemical conversion. They account for over 50% of direct emissions. This result indicates that it will be difficult for sectors like these to improve their emissions intensity to match the rate of decline of free allowances anticipated in phase 4 of the EU ETS, leading to exposure to a greater risk of CL.

The European Technology Platform on Sustainable Mineral Resources

The ETP Sustainable Mineral Resources has established already its strategic ambitions related to the climate change and energy efficiency goals