FuelsEurope – Position Paper EU Emission Trading Scheme: Compensation for indirect emission costs

Posted on 21/12/2018 in Position Paper

In the absence of global climate policies with a comparable ambition level to the EU ETS, and because of the strong exposure to international competition2, it is essential to compensate the refining sector for indirect emission costs. The refining sector is electro intensive, using 32,000 Gigawatt hours in 20153, and we anticipate this trend continuing. Being ineligible for cost compensation would reduce the contribution of our sector to the EU low carbon economy when compared to other already compensated energy-intensive sectors, as there would be no level playing field when using novel electricity-based low carbon technologies (e.g. hydrogen produced by RES-E).