According to independent analysis by the ECOFYS consultancy company, the costs deriving from the proposed changes in the fourth phase of the emissions trading system in the European Union (EU ETS) could almost completely wipe out profit margins in the steel industry. The study was presented on November 25 at a meeting between representatives of the industry and members of the European Parliament during their latest plenary session in Strasburg. Shortly after the results were published, Eurofer Director Axel Eggert commented: “According to ECOFYS's calculations, after the year 2020 the steel industry will face additional costs due to EU ETS amounting to 34 billion euros. Should these changes be implemented in the way proposed by the Commission, we will lose 48 per cent of free quotas for direct emissions, and at the same time we will not receive compensation for up to 76 per cent of indirect costs reflected in the price of electrical power.”
In their statement of response to the revision of the Directive on EU ETS, Eurofer indicated various possibilities for reducing extortionate costs in the industry. “The proposed measures presented by EUROFER would facilitate investment, which would help us to achieve the environmental objectives of the European Union in a more effective way. Steel is part of the solution, not the problem, and we are working hard to tackle these environmental challenges and succeed,” A. Eggert concluded.