The EU Climate Change Committee today approved the addition of two sectors and four sub-sectors to the current list of sectors deemed exposed to significant risk of carbon leakage for the period 2009-2014. Assuming the European Parliament and Council raise no objections, this addition will imply higher free allocation of emission allowances for these sectors and sub-sectors for the year 2014.
The two sectors are plaster and plasterboard, both of which belong to the gypsum industry. The four sub-sectors are open-die forging, solid whey and two sub-sectors related to processed potato products.
The Commission will now submit the draft decision to the European Parliament and the Council for scrutiny. Provided that they raise no objections within three months, the Commission will adopt and publish the decision, after which it will enter into force.
Member States will have to revise the free allocation to installations in the sectors concerned within three months from the adoption of the Commission decision, according to the procedure laid down in Article 16 of the Decision on harmonised free allocation.
The possibility of adding sectors or subsectors each year is foreseen in Article 10(a) paragraph 13 of the EU ETS Directive 'if it can be demonstrated, in an analytical report, that this sector or subsector satisfies the criteria of paragraphs 14 to 17, following a change that has substantial impact on the sector's or subsector's activities.'This possibility was also used in 2011 and 2012.
The Commission's analysis of reports submitted by the sector associations found that the processed potatoes and solid whey sectors meet the criteria of Article 10(a) paragraph 15 (costs/GVA above 5% and trade intensity above 10%), open-die forging meets the criteria of paragraph 16b (trade intensity above 30%) and the plaster and plasterboard sectors meet the qualitative criteria of paragraph 17.