CEFS welcomes the results of today’s vote on the report of rapporteur Federley as the opinion for the revision of the EU ETS Directive.[1]

The vote was supported by a significant majority of 45 MEPs which shows full support for the proposal. In particular, CEFS fully supports  the ITRE Committee’s adoption of  the Commission’s in/out approach on carbon leakage.

CEFS supports the Commission’s “in/out” approach because the combination of:

  • The economic burden resulting from a possible tiered approach;
  • Market opening to third countries in the EU’s trade negotiations;
  • The absence of an international carbon market and;
  • The liberalisation of the EU sugar market

will result in a lack of a level playing-field, with the risk that sugar production will move outside Europe (i.e. carbon leakage).

Carbon leakage protection must be set at the highest level to allow the European sugar industry to compete on an international level while investing in low-carbon forms of energy and energy-efficient technologies. The EU sugar industry has been using high efficiency Combined Heat and Power (CHP) systems in the production process long before 1990 and has achieved further significant reductions of CO2 emissions during the last 25 years.

We hope that the upcoming vote in the ENVI Committee will build on the results of the ITRE Committee. The vote taken by the latter is a step in the right direction, including a reasonable allocation for self-consumed electricity produced by CHP.

The ENVI Committee should support the position of the ITRE Committee that all sectors on the carbon leakage list should receive 100% free allowances, in line with the Commission proposal.