The European Steel Association (EUROFER) has issued a joint statement on tackling the current unprecedented energy crisis. Ahead of the European Council meeting, energy-based sectors in the EU called for immediate support to tackle rising energy prices and structural measures to provide the affordable low-carbon energy needed to meet the EU Green Deal target.
According to the statement, energy-based companies had to cut production or temporarily close their factories due to high prices. Industries need access to affordable low-carbon energy sources to ensure the competitive transition to climate neutrality goals.
While the ongoing crisis is linked to several cyclical factors, its effects also provide important medium-term indicators for the Fit for 55 Package and the overall climate and energy regulatory framework:
- Carbon price spikes should be avoided under the EU Emissions Trading System and effective carbon leakage protection should be provided in the revised ETS Directive;
- Promote long-term corporate Power Purchase Agreements (PPAs) to facilitate access to competitive carbon-neutral electricity from spot markets at more predictable prices;
-Industrial demand-response should be adequately rewarded for its network stability benefits;
Competition policy, including the upcoming Climate, Energy and Environment directives, should provide a supportive regulatory framework for industrial transformation.
