EAA Director General supports the need for an urgent ETS reform

In response to today’s vote in the European Parliament’s ENVI Committee on the ETS Market Stability Reserve, Director-General of the European Aluminium Association Gerd Götz issues the following statement:

“We strongly support today’s acknowledgement from a wide spectrum of political groups and MEPs of the urgent need to address indirect carbon costs at European level under an urgent ETS reform. These costs are embedded in electricity prices and cannot be passed on due to aluminium’s global pricing, thereby placing European aluminium producers at a unique competitive disadvantage. Following the October Council Conclusions in which the Member States called on the Commission to take concrete action, today’s vote represents yet another strong call for concrete actions in support of the competitiveness of Europe’s most exposed industries.

What is now critical is for the European Commission to deliver a proposal for a comprehensive review of the ETS, including an effective and pan-European compensation scheme to offset the unsustainable energy bills crippling our industry. This should be the natural complement to an earlier introduction of the MSR, particularlyas the mechanism will drive up the carbon price. This is key to to stop investment leakage and restore the competitiveness of one of Europe’s most dynamic and innovative industries once and for all”.