European Emission Trading Scheme

The European Aluminium Association (EAA) fears that the future of the aluminium industry in Europe may be in jeopardy as a result of the revised European Emission Trading Scheme (EU ETS) .

The EU ETS is a key policy introduced by the European Union to help meet the EU's greenhouse gas emissions reduction target of eight per cent below 1990 levels under the Kyoto Protocol. On 28 January, the European Commission's final proposal for the review of the EU ETS was published. Aluminium recycling plants are included in the EU ETS.

Christel Bories, Executive Committee Chair of EAA, said: "The European aluminium producers see the Commission's proposals on free allocation for direct emissions, for sectors exposed to carbon leakage, as positive, but more concrete measures to mitigate the CO2 cost pass through into electricity prices are required to ensure the future of the aluminium industry in Europe."

Patrick de Schrynmakers, Secretary General of the EAA, added: "It is absolutely necessary to urgently identify the sectors subject to carbon leakage, in the text of the directive and to confirm adequate compensation measures to allow continued investment by the aluminium industry."

The EAA believes that Europe should recognise the major role recycling plays, with positive incentives for growth, instead of placing an additional financial and administrative burden on a sector that plays a vital role in improving environmental performance.