16.07.2024
Stellungnahme

VIK-Feedback to the Commission Delegated Regulation supplementing Directive 2003/87/EC as regards the requirements for considering that greenhouse gases have become permanently chemically bound in a product

VIK German Association of Industrial Energy Consumers welcomes the efforts of the EU Commission on further development of regulations regarding the requirements on permanent CCU and would like to use the opportunity to provide feedback for the consultation.

The regulation states that two conditions must be met to recognise permanent chemical CO2 sequestration:

- CO2 is bound in a product via a controlled and active utilisation process,

- CO2 remains permanently (at least several centuries) chemically bound in a product.

Both conditions are understandable, but in our view, there are some aspects concerning circular economy and sustainability which should be considered more seriously. The relative benefit of using CCU is based on the avoidance of fossil raw material extraction, independent of the end-of life fate of the product. The Delegated Act, which is bound to the text of the ETS directive, is not able to heal this shortcoming.

CO2 is a basic material in the chemical industry. Industries that produce CO2 and use it as a material, are massively affected financially by emissions trading which is reflected in the poorer global competitiveness of European companies. The levy also makes it more difficult for companies to invest in environmentally friendly production. Instead, we propose opening the perspective of CCU recognition to include circular economy.

1. Necessary changes of the Art. 12 (3b) of the ETS-Directive

    At this moment, the ETS does not set the right incentives to tap the circular potentials of CCU for products as urea, petrochemicals and precipitated calcium carbonate. The climate contribution of CCU compared to conventional fossil feedstocks should be recognized for both short- and long-lived products.

    In view of the indispensability of CCU for a climate-neutral world, Europe should remove regulatory barriers, like the input-based pricing of CO2 in the ETS by change of Article 12 (3b). Application of this Article according to the Draft Delegated Act will lead to double counting at latest when waste incineration is included in the ETS.

    2. Examples from industry

      Urea is used technically as a starting material to produce adhesives and melamine, as well as for fertilization. The use of urea results in positive and sustainable application possibilities. Glue and melamine are essential for a more durable and sustainable wood and furniture industry. As a result, carbon dioxide is bound for the long-term. Although thermal combustion remains possible, the goal should be resource-efficient production coupled with a higher recycling rate. Such efforts should also be recognized within the ETS.

      The thermal incineration of furniture or chipboard (waste wood) should not result in double payment for carbon dioxide and should be avoided. On the one hand, CO2 emissions from ammonia production (further to urea, melamine and glues) are reported and, on the other hand, they are reported again when emissions from waste incineration are counted. The same issue will arise with other CCU based materials. Pricing should happen downstream as this reduces risks of double counting.

      The regulation does not provide a stable legislative framework for precipitated calcium carbonate in case of the suggested deletion of the precipitated calcium carbonate (PCC) in Article 49 (1) of the draft MRR. In order to avoid a stop-and-go policy, a transitional provision/phase should be foreseen in the MRR for CO2 that is chemically bound in PCC, until more clarity is given on the recognition of CCU-products in ETS in the view of the Commission evaluation according to Article 30 (5c) of the ETS Directive (“whether all greenhouse gas emissions covered by this Directive are effectively accounted for, and whether double counting is effectively avoided; in particular, it shall assess the accounting of the greenhouse gas emissions which are considered to have been captured and utilized in a product in a manner other than that referred to in Article 12 (3b).

      Dipl.-Pol. Adelia Rathmann, MA
      Ansprechpartner

      Dipl.-Pol. Adelia Rathmann, MA

      Seniorreferentin für Klimapolitik & Koordinatorin für EU-Energie- und Klimapolitik.