Glass for Europe has issued a position paper on the EU Emissions trading System (EU ETS) post-2010, which states that a 2014 quantitative assessment carried out the the EC for establishing the carbon leakage list for the period 2015-2019 had shown a 20% increase in the risk of carbon leakage in the flat glass sector compared to the previous assessment in 2009. At the same time, the level of protection against the risks of carbon leakage is diminishing due to a faster reduction of free allowances allocated to industrial sites according to the rules of phase III of EU ETS. Glass for Europe's paper is calling for "comprehensive reform of the carbon leakage protection mechanisms under EU ETS post-2020" and states: "The EU ETS is a source of costs for the flat glass industry which has to acquire CO2 allowances for the vast majority of its EU-based plants to operate. So long that emission trading schemes have not become global, and therefore, that competitors do not bear the same costs, the EU ETS contributes to weakening the competitiveness position of EU-based glass industries vis-a-vis third country competitors. As such, it indirectly favours production reduction in the EU and rises in imports into the EU from non EU countries without carbon constraints." Glass for Europe calls on EU decision makers to ensure full and effective compensation under the form of free allowances for industries exposed to risks of carbon leakage after 2020, to enable the flat glass industry to continue manufacturing in Europe its energy-saving products and ensure sustained investments in high tech manufacturing and product innovation.
