EU lawmakers should carefully scrutinise the climate policies of other regions when working on the bloc’s own policies to ensure domestic manufacturers can compete on an equal footing, lobby group IFIEC Europe said on Monday.

The lawmakers will from January resume debate on the bloc’s post-2020 ETS reform proposal, and concerns about carbon leakage are likely to play a prominent role notwithstanding last week’s Paris Agreement where 195 countries agreed to be bound to their own voluntary emission reduction pledges but with no absolute cap on GHG output.

In an emailed statement, the group of energy-intensive manufacturers and big emitters said:

“It is of paramount importance how governments will act after returning home. Restoring a more level playing field is essential for EU manufacturing industry. Today, we face a significant disadvantage when compared to non EU based competitors. This is linked to higher climate & energy costs pushed up by regulations aiming to implement an energy turnaround in isolation. It is now up to the other major global regions to choose a similar path to a low carbon future, as agreed in Paris. As a result the cost gap should decrease and could make EU industry to regain its competitiveness and keep delivering innovative technological solutions. This is the smartest way to design the world’s low carbon future without harming EU social welfare.”

“Paris is a promising start, whereas real action will have to give the proof of worldwide intentions to combat global warming. The EU should check these actions of other regions thoroughly when designing its own climate policy. Combating global warming is a team effort; it can only be done together with all nations and industry worldwide,” said Annette Loske, President of IFIEC Europe.

By Ben Garside – ben@carbon-pulse.com