700%, the increase in CO2 price between
2018 and 2022
EU Emission Trading Scheme (EU ETS) is the main policy instrument to incentivise the reduction of greenhouse gas emissions in the European Union. The EU ETS is the world’s first major carbon market and remains the largest one. Started in 2005, the system has now entered in its fourth phase (2021-2030). The EU ETS directive is currently reviewed by the legislator to adapt it to 2050 climate neutrality target and the intermediate target set for 2030.
Why is it important
Glass fibre manufacturing is an energy intensive activity. Therefore, the European plants are covered by the EU ETS and must pay for the industrial emissions resulting from the production of continuous filament glass fibre products.
It is important to make use of the current EU ETS revision to make the legislative framework conducive for the industry transformation while preserving its capacity to innovate and invest:
– To preserve the investment capacity in the industry and provide for a predictable framework.
– To preserve the free allocations to an installation with no additional conditions to the ones defined in the current directive, such as implementing recommendations from energy audits or decarbonisation plans.
– To review the rules for compensating against the indirect costs linked to electricity prices to allow the compensation of the continuous filament glass fibre installations.