Together with other energy-intensive industries, the Confederation of the European Paper Industry (CEPI) is calling on EU leaders to take urgent action against exponentially rising energy prices.\u00a0Prices in this segment have risen four to five times in recent months and have recently reached even higher levels, according to a joint statement by CEPI and other interested industry associations in Europe.\u00a0In parallel, carbon prices have tripled since early 2021.\u00a0The statement adds that the current phase of unsustainably high energy prices in Europe is already undermining structural measures to provide affordable low-carbon energy needed to achieve the goals of the EU Green Deal.<\/p>\n
CEPI and other associations believe that the main reasons for the current situation are speculation in the financial market by financial players such as hedge funds and trading houses, imbalances in the gas market, seasonal decline in renewable energy production, reduction in nuclear energy production, closing of coal mines and increasing carbon costs.\u00a0All of this has had an impact on electricity prices.\u00a0As a result, many industrial energy users have been forced to downsize or temporarily shut down their power plants.<\/p>\n
The associations believe that the competitiveness and profitability of European energy-intensive companies have been severely affected as they are the most vulnerable to price shocks.\u00a0Energy costs account for the majority of their production and operating costs.\u00a0Therefore, a prolonged period of unbearably high energy prices could lead to serious losses, the relocation of European companies and an increase in carbon emissions, the statement explains.<\/p>\n
The energy crisis threatens the future of carbon-free investment and existing low-carbon projects in Europe.\u00a0The authors of the statement call for the swift action needed to secure investment in energy-intensive industries and address the issue of decarbonization.\u00a0If adequate funding is not secured, decarbonization could become even more of a challenge, they said.<\/p>\n
The signatories of the declaration say that EU leaders have many tools at their disposal to overcome the current crisis.\u00a0They call on national authorities to quickly use the full potential of the tools presented by the European Commission in October 2021.\u00a0In addition, urgent action is needed at the EU level to enable the affected companies to overcome this situation, which is likely to last for several months, and continue to invest in the energy transition in Europe.<\/p>\n
In addition, CEPI and other associations see the need for a reform of the Emissions Trading Schemes Directive in the current situation, which includes measures to provide effective protection against carbon leakage and to prevent sudden increases in emissions prices that could have a negative impact on energy.\u00a0costs.<\/p>\n
It is known that in addition to CEPI, the statement was signed by the European Association of the Cement Industry Cembureau, the European Association of the Ceramic Industry Cerame-Unie, the European Lime Industry Association EuLa, the European Association of Ferroalloy Producers Euroalliages, the European Association of Steel Producers Eurofer, the Association of European Nonferrous Metal Producers Eurometaux, the European Manufacturers Association Exca, Fertilizers Europe, Glass Alliance Europe and Ifiec, the European Association of Industrial Energy Consumers.<\/p>","protected":false},"excerpt":{"rendered":"
Together with other energy-intensive industries, the Confederation of the European Paper Industry (CEPI) is calling on EU leaders to take urgent action against exponentially rising energy prices.\u00a0Prices in this segment have risen four to five times in recent months and … Continue reading