European industry needs to revise the Green Deal – Moravia Steel

A reassessment of the policy on ETS emission quotas is also needed, according to the company's CEO

European industry needs to reevaluate the Green Deal and the ETS 1 emissions quota policy. This opinion was expressed by Petr Popelar, Chairman of the Board of Moravia Steel.

“The sharp reduction in quota allocation must be reduced, and speculators who have nothing to do with the industry must be prevented from manipulating prices,” he said.

The CEO of Moravia Steel also considers it necessary to establish a common energy policy within Europe and not to leave decisions to individual national governments, as was adopted in the European action plan, as this leads to unequal conditions in the market.

Popelar stressed that the company is ready for large-scale greening and decarbonization of the production process. However, the development of the Czech steel industry requires an improvement in the market situation.

He emphasizes that the steel industry cannot be lost and the region cannot depend on steel imports.

This year, the Moravia Steel group, the main shareholder of the Czech Třinecké železárny, will see a reduction in the free allocation of emission allowances.

“Increased costs, pressure from mandatory environmental measures that are very financially demanding, high energy prices – all this is destroying the steel industry,” Popelar said.

Recall that Czech Prime Minister Andrej Babiš, in a letter to EU institutions and leaders of the other 26 countries of the bloc published on February 2, called on the EU to review its carbon trading schemes in order to lower energy prices. He believes that the bloc should limit the cost of emission allowances within its ETS and postpone the implementation of its second phase.