EU must make energy more affordable – Cefic

23 June 2011 19:59  [Source: ICIS news]

LONDON (ICIS)--European energy policy must take a world view and make energy more affordable as a globalised chemicals market emerges, Giorgio Squinzi, the president of industry association Cefic said late on Thursday.

Squinzi was speaking before the Chemical Industries Association (CIA) awards ceremony at a hotel in Birmingham, UK.

Cefic said base chemicals, energy and feedstock together can exceed 50% of total production cost, and on average amount to 40% of costs.

The industry, accounts for 12% of total energy demand and for one third of all industrial energy (and feedstock) use in the EU.

“Energy policy in Europe needs a serious rethink. I look upon energy prices as an Achilles heel of the EU industry. Europe’s industrial electricity bill is considered higher than that in many developed and developing markets,” Squinzi said.

“So to keep production in Europe, energy must be affordable,” he added.

According to Cefic, the European Parliament recently debated the emissions trading scheme packages on allocation rules and benchmarks.

The European Council concluded earlier this year its priority actions for energy and innovation policy. 

“The European Parliament is to consider a roadmap during a vote scheduled for today on a report that responds to the 2010 Communication calling for Europe to target reductions greater than 20% by 2020 and beyond,” said Squinzi.

Cefic executives highlighted that, in order to reach the goals of a low-carbon economy in Europe, more emphasis must be placed on research and development (R&D) and the future innovations that will lead to even more efficient energy use.

By: Tanzeel Akhtar
+44 208 652 3214

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