The Commission’s proposal outlines the level of detail at which the exposure to carbon leakage of each sector is to be determined. Carbon leakage is the risk that an industry cutting carbon emissions in one region is undercut by more environmentally damaging producers elsewhere in the world.
The proposal outlines that evaluations for different sector proposals should be carried out at NACE-4 level – a four-digit statistical code used to identify different sectors.
Kelly, leader of Fine Gael in the European Parliament, argues that important details and differences in sub-sectors will be overlooked if the heterogeneous four-digit code is used and so has tabled amendments to have these evaluations undertaken using a more detailed eight-digit level.
We must ensure a level-playing field globally for all European industries
Kelly says the Commission’s proposal as it is would be bad news for farmers.
“We must ensure a level-playing field globally for all European industries and in its proposed method for determining exposure to carbon leakage, the Commission has failed to do so,” he said.
The MEP said that the proposal would leave subsectors – such as skimmed milk powder production in the dairy sector – unprotected against foreign competitors that would not be subject to the EU's Emissions Trading System (ETS) rules.
“They would therefore be able to produce much more cheaply. This would see EU industries competing on an uneven playing field with international competitors.”
Amendments
The MEP added that failure to take his amendments on board “would not only hurt European agriculture by putting extra costs on dairy produce manufacturing and driving them and farming out of Europe, it would also run counter to the whole point of the EU ETS – combatting climate change.”
Kelly, who last year represented the European Parliament at the COP21 Paris Climate conference at which a global agreement was reached to tackle climate change, concluded by calling on his counterparts in the European Council to ensure that this amendment remains in the final EU directive.
“There is only so much we can do as a Parliament,” he said. “Through this amendment we have recognised the problem, and so now I call on the European Council –and our new Minister [for Energy and Communications] Denis Naughten in particular – to make the right call on this crucial issue for farmers and keep this provision in the final document.”
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Conference to focus on energy questions on farms
The Commission’s proposal outlines the level of detail at which the exposure to carbon leakage of each sector is to be determined. Carbon leakage is the risk that an industry cutting carbon emissions in one region is undercut by more environmentally damaging producers elsewhere in the world.
The proposal outlines that evaluations for different sector proposals should be carried out at NACE-4 level – a four-digit statistical code used to identify different sectors.
Kelly, leader of Fine Gael in the European Parliament, argues that important details and differences in sub-sectors will be overlooked if the heterogeneous four-digit code is used and so has tabled amendments to have these evaluations undertaken using a more detailed eight-digit level.
We must ensure a level-playing field globally for all European industries
Kelly says the Commission’s proposal as it is would be bad news for farmers.
“We must ensure a level-playing field globally for all European industries and in its proposed method for determining exposure to carbon leakage, the Commission has failed to do so,” he said.
The MEP said that the proposal would leave subsectors – such as skimmed milk powder production in the dairy sector – unprotected against foreign competitors that would not be subject to the EU's Emissions Trading System (ETS) rules.
“They would therefore be able to produce much more cheaply. This would see EU industries competing on an uneven playing field with international competitors.”
Amendments
The MEP added that failure to take his amendments on board “would not only hurt European agriculture by putting extra costs on dairy produce manufacturing and driving them and farming out of Europe, it would also run counter to the whole point of the EU ETS – combatting climate change.”
Kelly, who last year represented the European Parliament at the COP21 Paris Climate conference at which a global agreement was reached to tackle climate change, concluded by calling on his counterparts in the European Council to ensure that this amendment remains in the final EU directive.
“There is only so much we can do as a Parliament,” he said. “Through this amendment we have recognised the problem, and so now I call on the European Council –and our new Minister [for Energy and Communications] Denis Naughten in particular – to make the right call on this crucial issue for farmers and keep this provision in the final document.”
Read more
Conference to focus on energy questions on farms
SHARING OPTIONS