Energy

Energy is a high priority issue for the chlor-alkali industry as every industrial electrolysis is by definition an electricity intensive process.
Read more information on this process on the How is chlorine procuded page

The European Chlor-Alkali industry and the revised ETS Directive

The chlor-alkali industry is an electricity-intensive industry which has already been impacted by the current Emission Trading Scheme (ETS) due to the CO₂ cost included in the electricity price.  The ability of chlor-alkali manufacturers and downstream consumers to pass on these costs is extremely limited as they are active on a global competitive market where non European manufacturers do not have these costs.  This puts pressure on our industry to move out of Europe (this is called "carbon leakage")   

The revised EU ETS Directive (2009/29/EC) recognises the need to avoid carbon leakage whilst at the same time fulfilling the climate change objective of reducing CO₂ emissions. 
Read more about EU ETS Directive on ec.europa.eu

The document The European Chlor-Alkali industry: an electricity intensive sector exposed to carbon leakage document (pdf) explains why and how the chlor-alkali industry is highly impacted by the ETS scheme.

Euro Chlor has also developed a Q & A which offers some answers to the often raised questions why the chlor-alkali industry is an industry at risk of carbon leakage and what compensation is expected.
Download the Q & A on the Chlor-Alkali Sector and the EU Emission Trading System document (pdf)

The setting up of the rules for the financial measures that Member States may give to compensate for additional costs of CO2 passed through in the electricity prices falls under the competences of the Commission.  These State Aid rules will set the maximum compensation that Member States could provide to industries exposed to carbon leakage due to CO₂ costs passed on in electricity prices (so-called indirect emitters).   The chlor-alkali industry, as part of the sector "basic inorganic chemicals" (according to NACE 2413), has been recognized as one of the exposed sectors.
Download the Euro Chlor position ETS financial compensation document (pdf).

At the beginning of 2011 the European Commission confirmed that the State Aid rules should be available by the end of the year.  Euro Chlor welcomed that the Commission recognises the importance of having the rules in place so that industry can get their dossiers ready and talk to their national authorities prior the revised ETS Directive enters into force on 1 January 2013. 

Stakeholders have the opportunity to provide their input and comments on the draft rules during two internet consultations.  The first consultation ended on 11 May 2011.  A second consultation will follow later in 2011.  Euro Chlor will again provide a consolidated input on behalf of the chlor-alkali industry. 

Move beyond 20% greenhouse gas emission reductions?

Euro Chlor has joined the Alliance of Energy Intensive Industries call upon the European Parliament not to move beyond the current 20% greenhouse gas emission reductions. Focus should instead be on international negotiations in order to reach a global agreement which would provide equal treatment and thus a level playing field for globally traded goods. 
Download the call upon the E.P. not to move beyond the current 20% reductions document (pdf)

Read also Euro Chlor's response to DG Climate Action on the public consultation in preparation of an analytical report on the impact of the international climate negotiations on the situation of energy intensive sectors.  
Download the Euro Chlor's response document (pdf)

Contact

Alistair Steel
Euro Chlor Executive Director
tel. +32 (0)2 676 73 50

Caroline Andersson
Senior Counsellor
tel.+32 (0)2 676 72 48 

Last update : 09/2011