The European Commission published its proposals for the climate and energy policy framework on 17 July.
It focused on the review of the EU Emissions Trading System (ETS), the fallback benchmarks, and the Electrification Action Plan.
FEVE, the European Container Glass Federation, emphasises that this package will play a key role in shaping Europe’s future plans for industrial decarbonisation and competitiveness.
Carlo Pirrone, Secretary-General of FEVE, said: “The ETS review and the Electrification Action Plan presented today mark a decisive moment for Europe's industrial future and for the investment prospects of the European container glass industry.
“We need to be pragmatic and technology-neutral, provide effective carbon leakage protection and ensure that the EU-ETS evolves in sync with the needs of our sector and with market realities.
“The container glass industry is fully committed to Europe's climate and circular economy goals, and FEVE members have been investing in more than 150 decarbonisation projects.
“Yet, in Europe we have lost roughly 10% of our capacity in just three years.
“This is the most acute crisis our sector has faced in decades under high energy prices, sluggish market demand and global trade tensions.
“We want to reduce emissions, but not industrial capacity.”
FEVE stressed that the EU climate and energy policy framework must recognise that the pace of industrial transformation will inevitably differ across sectors, industrial processes and regions.
While some full electric furnaces operate in Europe, they have limitations in terms of furnace size, type of glass and recycled content.
Feve disclosed that the container glass industry is pursuing a range of other decarbonisation pathways, including hybrid furnaces (replacing 40 to 80% of natural gas with electricity), biogas and hydrogen setups.
The association stated that the future EU-ETS should support the industry's competitiveness and better reflect sector-specific realities, technological readiness and infrastructure availability.
Furthermore, FEVE argued that free allocation levels must evolve with realistic decarbonisation trajectories.
The benchmarks that determine free allocation are among the most consequential elements of the Commission's package for the glass industry, and must be grounded in verified industry data and reflect what is technically achievable in order to support rather than undermine decarbonisation.
FEVE said: “For energy-intensive industries to invest, innovate and decarbonise in Europe, while remaining globally competitive, it is essential to get access to affordable, reliable low-carbon energy, timely infrastructure deployment, effective carbon leakage protection, increased reinvestment of ETS revenues in industrial transformation and a technology-neutral approach to decarbonisation.
“The European container glass industry is determined to remain both a global leader in circular packaging and a pillar of Europe’s industrial strength.”
FEVE is planning to assess the proposals against its objectives, aiming to work with the European Parliament, the Council and the Commission to ensure that the final legislative framework is grounded in facts and reflects market and technological realities, as well as industrial decarbonisation.
