Annex 4: Responses to targeted consultation question 9

• Author: Fabien Roques - Helene Laroche
• Pages: 89-92

Final rep ort

89

Annex 4: Responses to t a rgeted consult ation que stion

9

Tabl e 15: Respon ses t o qu estion 9

“What level of aid int ensity would best m aintain t he sector's incentives for energy

eff iciency investm ents? Wh at p aram eter s b esides the eff iciency benchm arks should be

used t o pr omo te sector' s incent ives for energy efficiency inv estm ent s?”

Secto r

Su mm ary of th e r espo nse s

05 .10 - Mining of

har d co al

N/ A

05 .20 - Mining of

lignit e

N/ A

07 .10 - Mining of

ir on or es

A m ax im um l evel of compensation should b e ensured without any

degressive

factor appl ied during t he upcom ing p eriod. Also, t he

com pensat ion syst em sh ould be implemented by all m em ber states to

av oid any a ddit io nal in tr a EU dist or ti ons in com pet it ion . It i s in t he sect or ’s

ow n in tere st t o im plem ent ene rgy effi ciency in vestm ent s.

07 .29 - Mining of

other non- fer rous

m etal ores

It is i n the sector’s ow n inter est t o im plement en ergy effici ency

inv est m ent s. The la ck of aid comp ensati on is lik ely t o dim in ish the

com petit iv eness o f

th e sector. The m ain elem ent det ermi ning

com pet iti vene ss is pro duct ion cost , w hich is driv en by ener gy, equ ipm ent

and lab our costs. The non-f err ous m eta ls m inin g sect or is a p rice tak er.

08 .91 - Mining of

chem ical and

fer til iser min erals

The EU am moni a i ndust ry is already the most ene rgy-ef ficient glo bally.

The extr a-

cost of t he EU ETS passed on th e elect ri cit y prices is not

providin g an incent ive for furt her ener gy efficiency i nvestments. On the

con tra ry, it low ers t he amo unt of capit al avail able for inv estm ent s in new

technolog ies or m ach ines. A c

arbon in clusion ( of im po rt ed fert ilizers)

mechanism would be t he best way to ensur e a level playin g field and at

th e sam e t im e t o in cent ivi se bo th EU pr oduce rs a nd i mpo rt ers t o i mp rov e

th eir ener gy e ffici ency.

08. 93 - Ext ract ion

of salt

N/ A

08 .99 - Oth er

mining and

quarr ying n. e.c.

Sam e as 07. 29 - Min ing of ot her non -ferr ous m eta l or es

10 .41 -

Manu facture of oils

and fat s

N/ A

10 .62 -

Manu factu re of

sta rch es and

sta rch prod ucts

Navigant do es not su ggest a lev el of aid intensi ty t o avo id confli cts of

int erest . Ho wever , it is in the sector ’s ow n interest to im plem ent en ergy

eff iciency investm ent s. The la ck of aid com pensation is like ly t o di mini sh

th e com pet itiv eness of th e sect or.

10 .81 -

Manu factu re of

sugar

Typically, an i ncr ease in energy efficiency woul d be based on econom ic

drivers. Electr ificat ion i s associated w it h hig her d ecar bonisa tion cost s.

Ther efor e, t here is no int erfer ence. The high costs of el ectricit y f rom the

gr id w it h f ull exp osur e t o t he car bon cost is to day one of th e m ain rea sons

not t o inv est in t echn ology lea ding to risin g el ectri ficat ion.

11 .06 -

Manu factu re of

malt

We env isag e t hat a full level ( 10 0% ) of aid int ensit y will maint ain our

sect or inc ent ive s fo r e ner gy inv est men ts. We con side r t hat a ll p ara met er s

th at ar e t echn icall y f easi ble, fi nan ciall y v iab le a nd th at can help ou r s ecto r

to red uce p rod ucti on co sts relat ed to elect ricit y u se, could be consid ered .

13 .10 -

Preparation and

spin ning of tex tile

fibres

N/ A