Federacciai seeks suspension of ETS for Italy
Antonio Gozzi, president of Federacciai, is calling for the temporary suspension of the emissions trading system (ETS) in Italy, where electricity prices are closely linked to gas costs. This can reduce electricity prices by about 25 euros./MWh (US$29.10 per tonne) pending a broader review of the mechanism at the EU level.
Speaking at a recent energy transition event in Rimini, Gozzi said that the EU's ETS has gradually evolved from a decarbonization tool into what he calls a carbon tax that depends on financial markets.
In the context of global uncertainty and rising energy prices, European companies should carefully analyze the impact of the system.
"No one can accuse the Italian steel industry of opposing the transition to energy: today we are already one of the most decarbonized production systems in the world, and about 85% of steel is produced in electric arc furnaces. But decarbonization should not escalate into industrial desertification," Gozzi warned.
.Meanwhile, the European Commission's proposal for a Production Acceleration Law represents another missed opportunity to boost the competitiveness of the European steel industry, he added.
The lack of "Made in Europe" criteria for steel is worrying. The Commission believes that the steel sector will benefit sufficiently from the new trade regime, which will be introduced in July. However, this was done to solve the problem of global overcapacity and cannot replace specific measures to support European production.
"As for the issue of ferrous scrap, a strategic resource for mutual security and the transition to a green economy, the final text has also been softened. The measures included in previous projects aimed at stimulating the use of recycled materials in Europe and strengthening controls on scrap metal exports have been canceled," Gozzi said in a note obtained by Kallanish.
There is also uncertainty about the classification of low-emission steel. The Commission decided not to regulate the voluntary labeling of "green" steel directly and does not clearly define the methodology to be adopted.
"We repeat that any criteria should be based solely on the actual carbon footprint of the product, avoiding mechanisms such as sliding scales for waste that unfairly limit production in electric arc furnaces, which are one of the most environmentally friendly and circular ways of smelting steel," he concludes.
Author: Natalia Kapra