Metal tube makers are concerned that European Union rules on carbon emissions could see their prices fall.
Metal tube manufacturers are concerned about tighter EU emissions rules due to a crackdown on carbon dioxide emissions.
The European Union (EU) has been struggling to cope with soaring CO2 emissions in recent years.
The EU is currently facing the worst CO2 emission trends in the industrialized world and has been cutting CO2-intensive industrial emissions to tackle the climate crisis.
In December, the EU’s Environment Commissioner, Joaquin Almunia, announced a clampdown on carbon-emitting industrial plants.
Almunia said the EU would be “more aggressive in its efforts to reduce CO2 pollution and to make sure we are not in the situation where CO2 is more important than other sources of energy”.
Under the proposed EU emissions trading system, the price of carbon dioxide (CO2) emitted into the atmosphere would be capped at 20 per cent of annual emissions.
Under the rules, carbon dioxide emitted by a facility could be counted towards the total.
But Metal Tube Industries Association of Europe (MTIA) president Jeroen Van Nieuwenhove said carbon prices would fall due the tighter EU regulations.
“We believe the EU will impose additional carbon-intensive measures on steel producers and manufacturers in the steel sector.
We expect prices to fall,” he said.”
It will be a bit like the carbon market in the US, which is being disrupted.
This will be even more disruptive for us.”
This is going to be very bad for us, and we need to protect our competitiveness.
“The proposed EU carbon trading scheme would allow for a range of measures to be introduced in the future, including carbon trading at industrial facilities and limiting the use of carbon capture and storage technology, which captures CO2.
Under the rules set to come into effect on January 1, companies operating in the European Union must use energy efficiency and renewables to cut their carbon emissions.
MTIA is also urging other EU member states to introduce carbon trading and support renewable energy.
In addition to lowering their CO2 output, some metal tube manufacturers have been increasing the amount of steel that they use in the past few years.
But Van Nuiwenhve said the current carbon pricing scheme was causing problems for the industry.”
The EU is a very complex system, and if the carbon price is to be used in the same way that we are using it, it will not work,” he told Al Jazeera.”
If we use a different system, we will be losing the benefits of the EU system, not gaining them.
“Van Nuiwaeth said that the Carbon Price would have an effect on the EU steel industry and the industry of other industrial industries.”
Steel production has been declining for years, so it is a significant loss for the steel industry,” he added.”
But it is also an important contribution to the overall economy of the European steel industry, as we export steel and produce steel products to Europe.
“When we export our steel products we also produce other products, like ceramics, plastics, textiles and electrical equipment.”‘
Big risks’ for steel industryThe Carbon Price will not have a significant impact on the steel market in Europe, but it will have a huge impact on steel industry in the United States, according to Van Nienweve.
“That is why we will have to think about the potential consequences of the Carbon Prices,” he explained.
Metal Tube Industries is one of the steel manufacturers to be hit hard by the proposed carbon pricing rules, with losses expected to reach more than $30 million this year.””
The US steel companies have been working hard to protect their industry, but now we are going to see the carbon tax being applied globally.”
Metal Tube Industries is one of the steel manufacturers to be hit hard by the proposed carbon pricing rules, with losses expected to reach more than $30 million this year.
“What is happening is that the carbon trading system is going down the drain,” Van Niewenhave said.
“We expect prices will come down in Europe and we will see a big impact on our industry.”‘
Not a good situation for the whole industry’A report from the Stockholm International Peace Research Institute (SIPRI) on the impacts of CO2 reduction measures published in September showed that carbon emissions from the steel and aluminum industries have dropped by about 1.5 per cent over the past decade, but the impact of CO 2 emission reductions on metal tube production was not as positive.
In the US alone, the impact on metal tubes has been estimated to be $8 billion, but Van Nietve said this would be a much bigger loss for his company than the $6 billion that it has already lost.
“For us, the biggest risk for us is to lose the carbon savings that we have,” he pointed out.
“Our business is based on the metal tube industry.
We are not a good position for the entire industry.”
Van Nuwewen said that if the Carbon Pricing was applied globally the impact would be much more significant.