The Swedish Forest Industries Federation answer to the “Updating the EU Emissions Trading System”.
The paper and pulp industry is energy intense and is covered by the Emission Trading System (ETS).
Supply of electricity to a competitive cost is essential for the competitiveness of the Swedish forest industry. We fully support the objectives of the European Green Deal and we are strongly supporting the goal of reaching net zero greenhouse gas emissions by 2050.
Our industry is characterized by investments that last for decades. The amendment to the ETS directive needs to preserve regulatory stability. The 2018 ETS review already introduced substantial changes that still need to be implemented. Retroactive rules must be avoided. This would undermine the system as a
whole.
The competitiveness of European industry must be secured, and carbon leakage avoided. Avoiding carbon leakage must be taken into regard when the emission caps are set for the ETS sector and the non-ETS sectors respectively. Part of the emissions from the non ETS sectors will be included in the ETS trough electrification of road transport and heating, which also needs to be considered when setting the caps for ETS.
