Turkish Ceramics Federation (TSF) has participated the European Green Deal (EGD) – Energy-Dense Industries Consultation Meeting held in the Ministry of Commerce. Ceramics is among the industries that may be affected by the policy changes assumed to be put into practice by EU.
The meeting has been organized to hold consultations with “steel, aluminium, cement, glass and ceramics” industries that are thought to be affected by the policy changes assumed to be put into practice by EU within the context of the European Green Deal of the Ministry of Commerce. Due to the change in Deputy Minister of Commerce Gonca Yilmaz Batur’s program, Deputy Director General of International Agreements and EU of the Ministry of Commerce Bahar Guclu has taken on the chairmanship of the meeting.
First of all, information was given on European Green Deal in the meeting. It was indicated that this is a new growth strategy, has a vision of neutral climate till 2050, that this deal will apply to all the policies of EU and that whole EU policies such as industry, finance, transportation and energy will change.
Another subject discussed in the meeting was the Carbon Leakage List. This is an exception list to prevent manufacturing being moved away to countries with no strict climate measures because of the taxes to be paid for carbon emissions. Being on the carbon leakage exception list means getting 100% subvention for carbon taxes. Industries on the list have exceptions for between 2020-2030. They’re getting indirect cost (electricity etc.) support. EU Phase 4 Carbon Leakage Exception List will be used as a base for the studies to be carried out. Ceramics manufacturing is on this exception list.
Below points were also indicated in the meeting:
In order to preserve the competitiveness of Europe and prevent carbon leakage, that taxes for the choosen industries, will be taken according to the carbon content of the items at import price and that this practice will begin on the 2nd quarter period of 2021,
That steel, metal, ceramic, glass products are holding the 28 Billions $ portion of 2019, that this constitutes the half of the exportation to EU countries and steps to be taken upon this are important,
Within the content of the opinion to be prepared; that an evaluation will be made in terms of design, methodology and scope,
I. Design: Regarding the commission’s possible design of border regulations on carbon, that there are three options included as:
- Applying carbon tax on both the imported and choosen domestic products,
- Applying a new carbon customs tax for imported products,
- Applying EU’s Emission Trade System (ETS) also to importation,
II. Methodology: Referring the peak values worked up on EU-wide under the Emission Trade System (ETS) for the industrial processes, that border regulations for the industries subject to ETS, may be based on similar methodologies (as long as the exporter does not prove the lower carbon footprint or higher carbon cost) and that an alternative method to be evaluated by the comission, may be determining the carbon footprints of the products,
III. Industrial scope: That an important step of the commissions works, will be determining the industries to be subject to measures; that the scope will be determined from the industries with the highest levels of carbon leakage; that the starting point of the works to be carried out related to determining the scope of the regulation, will be the list dated 15.02.2019 regarding the industries and sub-industries considered as having the “high” possibility of being exposed to carbon leakage for the ETS 4th Phase application period (2021-2030).
