Annex 6: Responses to targeted consultation question 11

• Author: Fabien Roques - Helene Laroche
• Pages: 97-100

Final rep ort

97

Annex 6: Responses to targeted consu ltation qu e stion

11

Tabl e 17: Respon ses t o ta rget ed consult ation q uestion 11

“H ow w oul d a degr essive ind irec t em issi ons c ost comp ensat ion , e. g. star tin g at 75 % of

th e aid int ensit y, affect the risk of carb on l eakage in th e sect or?”

Secto r

Su mm ary of th e r esp onse

05 .10 - Mi ning of

har d co al

N/ A

05 .20 - Mi ning of

lignit e

N/ A

07 .10 - Mi ning of

ir on or es

Any com pensa tion less tha n fu ll co mpen sati on r educes the

com pet itiv eness of t he m ini ng o f ir on o re se ctor com pared with

com pani es pr oduci ng o utsi de of Euro pe, since prod ucti on co st i s th e

m ain d riv er of com peti tiv eness.

Giv en t he m ark et c harac teri stics of th e sect or, such as no pri cing powe r,

gen eral low pri ces an d stron g in ter nati onal comp etit ion, a degr essiv e

com pensa tion wo uld lik ely i ncre ase t he r isk o f carb on l eakag e.

07 .29 - Mi ning of

ot her non- fer rous

m etal ores

Any com pensa tion less tha n fu ll co mpen sati on r educes the

com pet itiv eness of t he o ther no n-fer rous met als m ini ng secto r

com par ed with com pan ies p rodu cing out side o f Eur ope, since cost is t he

m ain d riv er of com peti tiv eness. A de gressi ve c ompe nsat ion w ould lik ely

inc rease the risk of carbo n le akage .

08 .91 - Mi ning of

chem ical and

fer til iser min erals

As st ate d ab ove, an y pa rti al com pen satio n of th e ind irect cost s of th e

EU ETS t rig gers an i ncent ive to reloca te p rodu ctio n wh ere no su ch co st

exi sts. Given th e t rade int ensit y of th e EU f erti lizer indu str y, a loss of

glo bal c ompe tit iven ess du e to ind irect car bon costs could be mor e

har mf ul t han int ernal ma rket dis tort ion s fr om d iver se na tion al

com pensa tion sche mes.

08 .93 - Ex tra ction

of salt

N/ A

08 .99 - Ot her

mini ng an d

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 fact ure of o ils

and fat s

N/ A

10 .62 -

Manu fact ure of

sta rches and

sta rch prod ucts

Any com pensa tion less tha n fu ll co mpen sati on r educes the

com pet itiv eness of t he S tarc h sect or comp ared wit h com pani es

pr oduci ng o utsid e of Europe, since pro duct ion cost is the main dr iver of

com pet itiv eness. Giv en t he m ark et char acter isti cs of the sta rch s ector a

deg ressiv e com pen satio n w ould like ly i ncrea se th e ri sk of ca rbon

lea kage.

10 .81 -

Manu fact ure of

sugar

I t w ould redu ce t he carbo n le akage risk also bet ween EU Mem ber

Sta tes.

11 .06 -

Manu factu re of

malt

I f th e lev el o f aid int ensi ty will not be 1 00% , this mi ght affe ct t he

com pet itiv ity of the mal ting sect or, henc e th ere w oul d be a con cret e ri sk

of deloc alizat ion of p rodu ctio n act ivit ies outsi de t he EU.

13 .10 -

Prepara tion and

spin ning of text ile

fibres

N/ A