The Alliance of Energy Intensive Industries (EIIs), which includes Fuels Europe, a division of the European Petroleum Refiners Association, welcomed the draft of the 2030 Target Climate Plan.
First of all, the EIIs highlighted the need for rapid progress on the demonstration of first-of-its-kind technologies by 2030, considering the short time left until 2050. The Group supports the Commission’s long-term vision for the industry, but it underlines the need to go beyond the vision and the high-level statements: industry needs an enabling regulatory framework and specific supporting measures creating the framework conditions for the transformation of our sectors.
“Setting up the right enabling framework conditions for this transition is a must, here and now: hence we call for a Clean Industry Package with concrete actions in the next 12 months, matching Europe’s climate ambition,” reads the Alliance’s announcement.
According to the EIIs, investment cycles should also be taken into consideration in the in-depth impact assessment to be carried out by the European Commission, as innovation will not follow a linear path. Disruptive breakthrough technologies needed for the climate-neutrality objective require sufficient time to be developed, upscaled and commercialised. Similarly, major energy and other infrastructure changes will need to be identified and implemented to enable disruptive emission reductions. Unfortunately, the Alliance noted that the timing of the 2030 target decision-making process does not allow to consider third countries’ climate ambition to be submitted to the UNFCCC.
“A possible increase of EIIs’ carbon leakage exposure should be assessed alongside the revision of the 2030 climate targets as it is inherently linked to our climate targets,” the statement continues.
Carbon leakage measures should be commensurate with and effective for the high level of pursued climate ambition. As stated in the Green Deal Communication, carbon leakage can occur “either because production is transferred from the EU to other countries with lower ambition for emission reduction, or because EU products are replaced by more carbon-intensive imports”. Therefore, measures to prevent carbon and investment leakage should address both forms of risk, coming from direct and indirect carbon costs.