The European Commission's review of the Emissions Trading System (ETS) market, announced last Friday, has not met the expectations of the ceramic industry. Although Brussels has softened the initially planned cut in free CO2 emission allowances from 34% to around 20%, it has avoided establishing a specific benchmark for the tile sector, which was the industry's primary demand to adapt the regulation to its reality.
A previous report by an EU expert group suggested that with a specific benchmark, free allocations could even increase by 12%, considering the industry's decarbonization efforts and the lack of mature technology. This measure seemed feasible a few weeks ago, but the final stance of France and Germany, who rejected a specific reference believing it would penalize industrial sectors in their own countries, has thwarted this possibility.
The pressure from these two European powers has prevented the ceramic industry's main demand from progressing. Brussels has opted for a one-size-fits-all solution, with a slight reduction in the cut of free allowances. Both Ascer and Anffecc have deeply regretted the European Commission's position on this decision.
