Climate Change -ETS

The European Union has set ambitious targets for 2020: 20% increased energy efficiency, 20% share of renewable in total EU energy consumption, 20% reduction of greenhouse gases (GHG). The main tool for reducing greenhouse gases in industrial sectors is the EU Emissions Trading Scheme (EU ETS), a cap and trade scheme for CO2 allowances launched in 2005, laid down in the so-called ETS Directive (2003/87/EC). On 5 June 2009 a new EU Directive (2009/29/EC) setting out the framework for the EU ETS in 2013-2020 was published in the Official Journal of the European Union. Within IMA-Europe mainly the lime industry, represented by EuLA (European Lime Association), is covered by the EU-ETS.

The ETS operates in 30 countries (the 27 EU Member States plus Iceland, Liechtenstein and Norway). It covers CO2 emissions from installations such as power stations, combustion plants, oil refineries and iron and steel works, as well as factories making cement, glass, lime, bricks, ceramics, pulp, paper and board.

The sectors that fall within the scope of the ETS Directive will have to reduce their total emissions by about 20% by 2020. The European lime producers are actively working to reach that target.

Issues of specific concern to IMA-Europe / EuLA members are:

  • Benchmarks and allowances: benchmarks have been developed per product, on the basis of a value reflecting the average greenhouse gas performance of the 10 % best performing installations in the EU producing that product. From 2013 to 2020, allowances will be allocated to installations on the basis of these benchmarks.
  • Risk of “carbon leakage”: carbon leakage refers to businesses transferring production to other countries due to the cost related to climate policies.  To address the competitiveness of industries covered by the EU ETS, such sectors will receive a higher share of free allowances under the new EU ETS (2013-2020). The European Commission has established a list of sectors at risk of carbon leakage, valid until the end of 2014. Manufacture of lime is included in the list.