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Fertilizer industry tells MEPs that “one size does not fit all” in ETS: Tiering is a solution


This evening at the dinner debate hosted by MEP J. M. Marinescu in the European Parliament in Strasbourg, Jacob Hansen, the Director General of Fertilizers Europe, told the MEPs that "differentiation of sectors is needed to ensure an effective ETS." 


Two thirds of emissions from ammonia production, the building block of fertilizers, are process emissions, and by definition, these emissions are unavoidable. Improvements in efficiency by means of industrial technology are limited, as the industry is already close to thermodynamic levels.


Hansen outlined that this is why any correction factor is damaging to the industry. "If a correction factor is applied equally to all sectors, the fertilizer sector will be hit three times as hard due to the process emissions".


The event titled "ETS reform and what it means for Central and Eastern Europe" was hosted by MEP J. M. Marinescu and was supported by Fertilizers Europe and the Central Europe Energy Partners. Mr. Christian Holzleitner, policy adviser to the Director General of DG CLIMA, outlined the European Commission’s methodology and thought process on setting out the proposal. Mr. Marcin Bodio of CEEP, discussed the challenges and opportunities for Central Europe.


"Not all industries are the same", Hansen said, stating that he would like to see a form of differentiation being applied across sectors, which could be in the form of either the up-front targeted approach as proposed by MEP Federley, or it could be tiered on the correction factor, one of the options proposed by MEP Duncan. A combination of both could also be possible.


Hansen concluded by restating that "avoiding the correction factor is key", and said he was sure that MEPs and Member States would take full account of the different characteristics of industry and will make a fair and balanced decision. "Tiering will be part of the way forward because one size does not fit all".