MIL-OSI Europe: Written question – Exclusion of the ceramics sector from cost offsets under the Emissions Trading System (ETS) and the single market distortions caused by the allocation of free allowances – E-001557/2025

Source: European Parliament

Question for written answer  E-001557/2025
to the Commission
Rule 144
Roberto Vannacci (PfE)

The Italian[1] and European ceramics sectors are very energy-intensive and do not currently have technologically and economically feasible alternatives to natural gas.

Exports alone account for 82 % of the total turnover of the Italian ceramics industry, exposing this sector to competition from non-EU countries that have less restrictive environment- and climate-related regulations.

The current Emissions Trading System does not reflect the ceramic tile production process as a whole, as it allocates free allowances to this sector on the basis of just one product benchmark (‘spray-dried powders’). This state of affairs penalises plants which manufacture these powders themselves as it compels them to buy additional emission allowances, thereby driving up their costs and putting them at a disadvantage vis-a-vis third country exporters. Furthermore, the ETS does not account for energy that is generated by means of combined heat and power (CHP) systems, which are more efficient and produce fewer emissions.

While the Commission has determined that sectors like steel, paper and aluminium[2] can benefit from carbon emission (‘carbon leakage’) cost offsets, the ceramics industry has been excluded from this arrangement even though it has a high trade intensity (in excess of 40 %) and a carbon leakage indicator above the 0.2 threshold set by Directive 2003/87/EC.

In the light of the above:

  • 1.Will the Commission revise the free allowance allocation system by taking the entire ceramics production cycle into account along with energy-efficient technologies like CHP systems?
  • 2.Given the evolution of energy prices, will the Commission limit itself to applying the criteria laid down by Directive 2003/87/EC, thus allowing the ceramics sector to benefit from carbon emission cost offsets?

Submitted: 16.4.2025

  • [1] https://confindustriaceramica.it/w/riformare-il-sistema-ets.
  • [2] https://eur-lex.europa.eu/legal-content/IT/TXT/?uri=CELEX%3A52020XC0925%2801%29.
Last updated: 28 April 2025

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