Position Paper

ETS reform post 2020 - Chlor-alkali industry calls for full compensation of indirect CO2 emission costs


The European chlor-alkali industry calls for an ETS reform package that safeguards its international competitiveness and ensures regulatory certainty - in order to provide investment certainty a comprehensive EU wide solution to fully compensate indirect CO2 emission costs is needed.

  • Carbon leakage is a real risk. We urgently need certainty that we are recognised as exposed to carbon leakage to prevent further investment leakage.
  • Use auctioning revenues to compensate indirect emitters. Member States must use auctioning revenues to compensate indirect emitters that meet the conditions set in Art 10a (6).
  • 100% compensation for indirect CO2 emission costs. Full compensation at 100% of the benchmark is required and there should be no reductions in compensation through use of an aid intensity correction factor. 
  • EU wide solution is needed. The proposed "Member States should adopt financial measures" need to be changed to "Member States shall adopt financial measures.