European Commission publishes NIM decision

The European Commission published its decision relating to the National Implementation Measures (NIM) under the EU Emission Trading Directive (EU-ETD) on 5 September. It highlights that a stringent cross-sectoral reduction factor has been applied to the free allocations to be allocated to industry recognised as vulnerable to carbon leakage.

Responding to the decision, the European cement association Cembureau said it “deplores the lack of transparency in the Decision regarding the numbers and definitions provided by Member States (such as for electricity generators).” 

The organisation has always advocated for a predictable and reliable regulatory environment that provides legal certainty for long-term investments and allows for economic recovery and growth. “Given the reduction in free allowances triggered by the cross-sectoral correction factor, it is imperative that the industry’s competitiveness is preserved in order to guarantee the survival of the cement industry in Europe for the years to come by ensuring that the assessment of sectors at risk of carbon leakage applies exactly the same criteria as those applied in 2009 in order to preserve an international level playing field for sectors exposed.”

It also points out that there is no binding international climate agreement which imposes similar burdens on operators in the major cement-producing jurisdictions as well as ensuring a stable legal environment. It argued against modification of essential parameters of the carbon leakage findings (including the CO2 price), particularly as progress in international climate change negotiations do not warrant this.

The Cembureau also called upon the European Commission not to deviate from the EUR30 carbon price tag when it established the 2014 carbon leakage list.