Four parliamentary responses in three days, from the "technical" minister to the Prime Minister himself, and one invariable one: when it comes to reforming the European carbon market, Luxembourg is stalling while quietly advancing the key issue of industrial exports.
The answers to four parliamentary questions submitted for consideration in the period from the end of February to the beginning of March were received on April 24, 27 and 28. The delay of almost two months reflects the government's position: regarding the reform of the European Emissions Trading System (ETS), the pace is still being set in Brussels.
The level of the signatories to the agreement highlights the sensitivity of the issue. In response to a technical request from Minister of Environment, Climate and Biodiversity Serge Vilmes (CSV), in addition to the quotas allocated by ArcelorMittal, there are joint responses signed jointly with Minister of Economy Lex Delles (DP), as well as a more strategic response from Prime Minister Luc Frieden (CSV), Minister of Foreign Affairs and Foreign Policy Xavier Bettel's Ministry of Commerce (DP); Minister of Economy, Small and Medium Business, Energy and Tourism and Minister of Environment, Climate and Biodiversity. This structure reflects a fully interdepartmental approach to management.
In fact, the Government's position remains unchanged. The government confirms that the ETS is a "key element of climate policy" and is part of the goal of achieving carbon neutrality by 2050. This position corresponds to the European concept outlined in the package of measures "Compliance with requirements 55", which provides for a 62% reduction in emissions in the relevant sectors by 2030. But very quickly, the focus is shifting to the competitiveness of industry. European industries are under "serious pressure" related, in particular, to energy prices and international competition, which is considered unbalanced. In this context, strengthening the Carbon Dioxide Emissions Control Mechanism (CBAM) is a priority to ensure a level playing field.
Support for responsible European exporters?
It is in this context that one of the few truly transformative measures proposed by Luxembourg is located. The Government emphasizes that the reform should "facilitate the adoption of long-term structural solutions to increase the competitiveness of industry," especially in the context of exports. Indirectly, this indicates an unresolved issue within the European system: although the MACF concerns imports, it does not apply to exports, leaving European producers unprotected in international markets.
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