A differentiated approach to ETS for highly exposed industries

4Oct
2016
Dinner debate in Strasbourg
  • Javier Goñi del Cacho, President of Fertilizers Europe and CEO of Fertiberia

Each year, the fertilizer industry transforms millions of tonnes of raw materials – air, water, natural gas and mined ores – into fertilizers based on the essential crop nutrients nitrogen, phosphorus and potassium. European-produced fertilizers offer Europe’s farmers a secure supply of products that make a major contribution to their productivity, profitability and their ability to help meet food demand.

The European fertilizer industry has invested heavily in recent years, resulting in almost 50% emission reductions. In 2014, it was listed by the European Commission among the sectors and subsectors deemed to be exposed to a significant risk of carbon leakage. How can highly exposed industries such as the fertilizer industry further cut emissions while avoiding carbon, investment and job leakage and remaining competitive with producers from other parts of the globe?

In the framework of the European Commission’s legislative proposal for the EU ETS structural reform published in July 2015, Javier Goñi del Cacho, President of Fertilizers Europe assessed solutions for further emission reductions under phase 4 of the ETS (2021-2030). The presentation was followed by an exchange of views with EEF members.