Energy-intensive industries warn against extra costs of one-sided EU climate target

Go-it-alone action in Europe is to the strong detriment of industry

In the run-up to the EU climate and energy summit, the Energy-Intensive Industries in Germany (EID) have warned against the immense extra costs for industry of one-sided, high climate targets. EID spokesman Utz Tillmann called upon the summit participants and the German federal government to link ambitious targets for 2030 with a binding international climate protection agreement 2015.

Energy-Intensive Industries: Upcoming EU summit should avoid go-it alone action in climate protection. © Council of the EU
Energy-Intensive Industries: Upcoming EU summit should avoid go-it alone action in climate protection. © Council of the EU



Press Release
by the Energy-Intensive Industries
in Germany (EID)

In the run-up to the summit of Heads of State or Government in Brussels at the end of this week, the Energy-Intensive Industries in Germany (EID) have warned against the immense extra costs for industry of one-sided, high climate targets. EID spokesman Utz Tillmann called upon the summit participants and the German federal government to link ambitious targets for 2030 with a binding international climate protection agreement 2015: an agreement with real and comparable obligations for industrial countries and emerging markets alike.

Tillmann (director-general of the German chemical industry association VCI) stated: “The energy-intensive industries are committed to climate protection. But our production can only be competitive if there are comparable obligations internationally. In emission trading, go-it-alone action in Europe – with the planned one-sided climate target of -40% – would bring for us extra costs of billions of euros. No such extra costs arise for our competitors in other regions of the world. This would significant damage the competitiveness of energy-intensive companies in the EU.” Tillmann explained: “The existing compensation measures in emission trading are by far not enough to make up for the future extra burdens.” Therefore, he urged politicians for further corrections in this field.

EID spokesman Klaus Windhagen emphasised: “Climate protection cannot be shouldered by industry alone. The EU Commission wants the emission trading sector to make the major contribution to the climate target.” According to Windhagen, the emission trading system prescribes for the coming years and decades a massive and unacceptable reduction in the allocation of emission allowances, anyway.

Windhagen (director-general of the German Pulp and Paper Association/VDP) continues: “Our industries can cope with this requirement only by reducing production. Then, those production activities would take place in other global regions with high CO2 emissions. Consequently, this burden not only puts at risk jobs in Germany and in the EU but also adversely affects the climate.” For this reason, the energy-intensive industries are calling for the allocation of emission allowances to be based on realistic benchmarks and not to be subjected to an additional reduction factor.

Windhagen pointed to the considerable early action and achievements by the energy-intensive industries: In the period from 1990 to 2010 they cut their greenhouse gas emissions by 30% while their production grew by 44%. Windhagen brings forward the following demand: “In the deliberations the EU summit needs to take into account our early action – so that we can continue to manufacture our products in Germany and in the EU.”

The VCI represents the politico-economic interests of over 1,650 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, science and media. The VCI stands for over 90 percent of the chemical industry in Germany. In 2013 the German chemical industry realised sales of more than 190 billion euros and employed around 438,000 staff.

Contact: VCI Press Dept., Phone: +49 69 2556-1496, E-Mail: presse@vci.de
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