Heavy industry seeks EU carbon price threshold

European heavy industry association IFIEC welcomed July 14 the European Commission’s Green Deal and its 'Fit for 50' framework, while reserving judgement on it pending a thorough review.

Energy intensive industry has to overcome carbon costs and other regulatory requirements absent in some competing countries outside the EU. Using cheaper coal as well as labour costs, the latter have been able to take market share from the domestic producers.

IFIEC is therefore keen to see some kind of border payment based on the carbon content of imports as part of the package. This would make the competition fairer, as it said the bloc's manufacturing industry "faces major challenges" but it would "play a pivotal role in the transition towards a carbon neutral society." It said the "development of innovative sustainable technologies and products within the industrial sector will be crucial."

IFIEC said : "To make 'Fit for 55' a framework for thriving competitive European manufacturing industry, it needs a resilient energy and industry policy with a coherent and robust regulatory framework that ensures: access to affordable carbon neutral energy; financial support for breakthrough or immature technologies and protection against unilateral carbon costs; and efficient energy and emissions markets with investments in new infrastructure facilitating system flexibility."