Context

The EU ETS puts a cap on the carbon dioxide (CO2) emitted by business and creates a market and price for carbon allowances. It covers 45% of EU emissions, including energy intensive sectors and approximately 12,000 installations.

The EU ETS works on the 'cap and trade' principle. A 'cap', or limit, is set on the total amount of certain greenhouse gases that can be emitted by the factories, power plants and other installations in the system within the cap, companies receive or buy emission allowances which they can trade with one another as needed.

The revised ETS Directive specifies the rules for the 3rd trading period in CO2 allowances which will run from 2013 till 2020. The sectors that fall within the scope of the ETS Directive, like lime, will have to reduce their total emissions by about 21% by 2020. The European lime producers are actively working to reach that target.

ETS & the Lime Industry

The lime industry is both energy and carbon intensive. However, unlike most carbon intensive industries, the majority of our emission are not generated by heat or power generation but by a chemical reaction that occurs when limestone is heated (Limestone + Energy = lime + CO2, or - CaCo3 + energy =CaO + CO2).

This makes our carbon profile unique.

EU ETS post-2020 public consultation

On 08 May 2014, the European Commission launched a public consultation on the carbon leakage provisions in the view of the EU Emission Trading System (EU ETS) post-2020. EuLA participated to the consultation and answered the questionnaire.

EU ETS post-2020: The proposal to create a Market Stability Reserve

Regarding the proposal from the European Commission to create a Market Stability Reserve for the EU ETS after 2020, EuLA has developped a position paper supporting policy options that ensure a stable and predictable legal framework on reducing CO2 emissions without damaging industrial competitiveness. Our position addresses the current inefficiencies of the system in a holistic approach, allowing to take into account the specific needs of the energy and carbon intensive industries exposed to a risk of de-localisation of their production outside of EU.

The European Lime association believes that the EU ETS should remain a cost-effective market based instrument, and should support the growth of the industry while providing an incentive to reduce the emissions according to the best available techniques.

Our position paper can be found here: http://www.eula.eu/documents/position-paper-msr-post-2020-eu-ets