The Government weighs offsetting 25% of the cost of CO ₂ emission rights to the tile sector

Representatives of the Spanish ceramic cluster, concentrated entirely in the province of Castellón, have asked the Minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, that the objectives of decarbonization are not prioritized at all costs in exchange for sacrificing European industry. The head of the department, for her part, said she understands the concern of the sector and announced that they are studying the possibility of the Government compensating up to 25% of the cost of emission rights.

A representation of Ascer and Anffecc met with Ribera this past Tuesday at the headquarters of the Ministry for the Ecological Transition and the Demographic Challenge, with the purpose of transferring to the minister the reality of the sector, but above all to make him see the difficulties that this industry entails for facing the complex energy and environmental challenges that lie ahead, in accordance with the new requirements imposed by the Community authorities and by the Spanish Government itself.

In this context and as a continuation of this meeting, the broad business and institutional delegation has invited the minister to participate in a meeting in Brussels of the Spanish and Italian ceramic industry, in which the presidents of the Generalitat Valenciana and Reggio Emilia will participate, in addition to offering her the possibility of visiting a high-efficiency cogeneration plant.

The delegation was led by the president of Ascer, Vicente Nomdedeu Lluesma, who was accompanied by its secretary general, Alberto Echavarría. There has also been the president of Anffecc, Joaquín Font de Mora, and the secretary general of this entity, Manuel Breva. All of them have had the opportunity to explain to Minister Teresa Ribera what is the specific casuistry of the ceramic industry in relation to such key matters as energy, _CO2, and decarbonization objectives.

The meeting was also attended by Salvador Navarro, president of CEV and vice president of the CEOE, and the Minister of Sustainable Economy and Productive Sectors, Rafael Climent.

At risk the survival of companies

From the sector, the global figures of the cluster have been presented, as well as a photograph of what is the technological situation of the sector in relation to energy consumption, alternatives for gas substitution and reduction of CO_{₂ emissions}. In the words of Vicente Nomdedeu, “in the meeting we were able to convey to the minister the concern about the situation of the industry and in particular the cluster that is especially threatened by the emissions trading regulations and the price of CO_₂, at European level; and threatened at the national level by the situation of cogeneration and the FNSSE. The latter threats, he points out, depend directly on the energy and environment portfolio and can determine the survival of many companies.”

The minister, for her part, has expressed her understanding of the industry’s concern about the upward drift of the price of CO_₂, which could reach 50 million euros per year for the sector, if one takes into account that the price of CO_₂ in 2021 it has reached 58 euros, and the lack of viable alternatives to undertake decarbonisation in the ceramic industry within the deadlines set by the EU. Ribera has agreed with the industrial representatives that “you can not ask for something that can not be done”. He also announced that at the CO_₂ level, they are studying the possibility of the government compensating up to 25% for the cost of emission rights.

A “fairer” energy transition

Nomdedeu has conveyed to the minister that “if the authorities insist on carrying out their decarbonization policy without taking into account the business reality, they will have to decide if they sacrifice a good number of companies – and therefore, jobs – or if they accompany companies in that process through a fairer transition that guarantees the survival of the industry and the maintenance of employment.”

Joaquín Font de Mora, president of ANFFECC, added that the Castellón cluster is key to the development of the ceramic industry worldwide, and that frit and enamel companies are world leaders and pioneers in R + D + i and internationalization. In this sense, it considers “a solid and unified industrial and environmental policy necessary, which allows a decarbonization in line with the technological reality, in order to avoid the relocation of industry, which would only impoverish the national and European economy and would not contribute anything to the fight against climate change, since the environmental requirements in other geographical areas are much lower than those of Europe”.

Industry Summit in Brussels

From the cluster the invitation has been transferred to participate together with our Italian colleagues from Confindustria Ceramica, and the regional governments of the Valencian Community and Reggio Emilia in a meeting that is being promoted in Brussels in the near future.

The ceramic sector is an intensive gas sector and very influenced by other factors such as the risk of carbon leakage and the export rate, so instruments such as the FNSSE that have a high impact on the competitiveness of the cluster in the province of Castellón. At the meeting, the minister was told that the compensation announced for certain industrial sectors exposed to international trade is incompatible as it is proposed with European regulations since they can be considered state aid.

In relation to cogeneration, during the meeting it was insisted on the need to have a new regulatory framework that provides cogeneration with certainty, as well as the development of auctions that take into account the particularities of ceramic cogenerations, considered high efficiency. The representatives of the industry have conveyed to the minister the invitation to visit the cluster and know first-hand a high-efficiency cogeneration plant.

A key sector in the recovery

For his part, Salvador Navarro has recognized that moving towards a more sustainable economy is an inescapable challenge, but has insisted on the need to make compatible the fulfillment of green commitments with the maintenance of the most affected companies, such as ceramics. He also recalled that the private sector will be key in the economic recovery and for this “it is necessary that companies are competitive inside and outside our territory”.

The Minister of Sustainable Economy, Productive Sectors, Trade and Labor, Rafa Climent stressed, after the meeting with the minister, that “the institutional support from the Generalitat Valenciana with the sector is total. We believe that the ceramic industry is of utmost importance for the Valencian economy, especially in these times of recovery and resilience and the biggest challenge facing the ceramic industry is the decarbonization of production processes. Therefore, the serious involvement of the State in the reduction of the energy costs of both gas, electricity and CO_₂ is necessary to be able to carry out the decarbonization of the tile industry and that it can be more solid, stable and competitive”.

Source: Castellón Plaza