IFIEC Europe represents the interests of industrial energy users in Europe for whom energy is a significant component of production costs and a key factor of competitiveness in their activities in both Europe and throughout the world.
Brussels, 28 April 2016 – IFIEC Europe, representing EU energy intensive manufacturing industry, takes note of the Court’s Judgment in the case against the calculation of the cross-sectoral correction factor (CSCF). Companies claimed that mistakes have been made both in the industry cap and hence the free allocations.
Further analysis on the judgment and its consequences is required to assess the extent of this ruling and what implications this brings for the allocations in the EU ETS trading period 2013-2020.
Energy-intensive sectors remain concerned about the non-transparent procedure and stringency of the Commission Decision 448/2013 on the CSCF back in September 2013. Therefore, IFIEC Europe calls for a transparent analysis and recalculation of the CSCF by the EU Commission.
Looking forward, IFIEC Europe will further engage in the stakeholder process on EU ETS Reform (for 2021-2030), with the aim of reaching a genuine safeguard against unilateral direct and indirect carbon costs for carbon leakage exposed sectors. This means that the best performing companies in EU ETS carbon leakage sectors should not bear further carbon costs as stated in the October 2014 European Council Conclusions. To that end we support an approach based on real benchmarks, allocation based on more recent production data and last but not least an adequate reserve that ensures full allocation to benchmark levels.