Spreekpunten van minister Kamp bij de High-Level Conference on Energy-Intensive Industries

Toespraak | 15-02-2016

Introduction

Ladies and gentlemen,

• I have just arrived from North Rhine-Westphalia, the industrial heart of Europe. In this region known traditionally for steel, companies still make machines and materials, but are now using innovative methods and all kinds of raw materials. Innovation has enabled industry in the region to remain the preferred supplier of many major manufacturing companies.
• Energy-intensive industries are a key engine of economic growth in Germany, and also in the rest of Europe:

• They invest large amounts of money in innovation, raising labour productivity; they directly employ around 7.000.000 people, and create jobs for many times more in the services sector and the smaller companies that supply them and they are a vital first link in the value chain in manufacturing and other sectors, including construction. Those sectors can't function without basic products like chemicals, cement and metals.
• Our energy-intensive industries are currently having a hard time. Growing international competition has made it more difficult for companies to stand out, and to make a profit. European industry is finding it harder to compete in terms of production alone. And what’s more, companies are now under growing pressure from the public and the authorities to increase sustainability. All these challenges will require innovation, sustainability and new earning models.
• At the same time, companies must not fail due to unfair competition. We have to do something about this. But even with a level playing field companies will have to adapt their products and processes to current demands.

About the Problems in European steel industry

• This is a time of deepening crisis for the European steel industry.
• It has lost half its market share since 2001 and it’s lost around twenty per cent of its workforce since 2009.
• The situation in the steel industry shows that we need to work together in the EU to make our industry more competitive. Acting alone, member states cannot meet challenges like global overcapacity in production, low steel prices and competition from cheap Chinese steel. We need to step up implementation of the Steel Action Plan.
• At the extraordinary meeting of the Competitiveness Council on 9 November we discussed the situation in the steel industry. Today we are looking at how we can create the right conditions for all energy-intensive industries to ready themselves for the future. Here I would like to examine three important actions.

1. Create a level playing field for trade

• First of all, we need to level the playing field in the steel market. The industry and a number of member states have encountered problems involving unfair competition, particularly from China.
• So I'm very pleased that the Commission announced last week that it plans to take even more anti-dumping measures.
• Various parties believe that the Commission needs to act more quickly when unfair competition comes to light. In Europe, it takes longer to introduce new measures than in the US, for example.
• At the same time, Europe stands to benefit like no other from open markets, and it's important that decisions on anti-dumping measures carefully weigh all the interests involved.
• But where the process can be faster, it should be faster. It's hard to explain to people who’ve lost their jobs that the EU was slow to act.
• We also need a balance between decisiveness and due care in the debate on awarding China Market Economy Status. At the informal meeting of the Trade Council on 2 February measures have been discussed that might soften the impact of this move on our industries. At the same time, consumers and other sectors must not suffer from trade defence measures.
• In this respect, the Dutch Presidency is pleased with the Commission’s announcement that it will conduct a robust impact assessment on awarding China market economy status before taking a decision on this issue.

2. Improve ETS

• Second, we can enhance our competitive position by improving the emission trading system.
• Both industry and several member states have warned that tightening up the ETS must not harm our competitiveness or lead to carbon leakage.
• The global climate change agreement concluded in Paris laid the basis for a more level playing field for businesses, as other parts of the world will now have to do more on climate policy. We will press them to deliver on their commitments.
• During our Presidency, the Netherlands will take steps towards ETS reform on the basis of the Commission’s impact analysis on the Paris Agreement.
• In line with the 2014 European Council Conclusions, we will work towards a well-functioning ETS that helps achieve our reduction targets while providing guarantees for business competitiveness. Not only now, but also in the period beyond 2020.

3. Encourage more private investment in innovation

• Lastly, it is important to stimulate innovation. Innovation is vital for industries to remain viable in the long run. Companies can become more innovative and productive by replacing old technologies and business models. There are opportunities in digitisation and sustainability. But companies need to take the initiative, and invest. It's up to the EU to convince them to do this in Europe.
• European innovation programmes and funding schemes are open to projects that enhance companies’ added value to society and the economy. By targeting our instruments more effectively at sustainable production we can accelerate the energy transition and prepare our companies for the future. Current initiatives show that there is a lot to be gained from this approach.
• Within the 'SPIRE' partnership, for example, public and private parties are working to build a sustainable process industry through resource and energy efficiency. By investing together in breakthrough technologies, we are achieving great results, including 20% more resource efficiency through more efficient ovens, boilers, pumps and heat exchanges and a 20-50% reduction in energy consumption in industrial processes, thanks to new energy-storage systems. In another promising development, SPIRE is also working on using CO2 as a raw material in industrial processes.
• Or take another example. Tata Steel is working with start-ups specialising in artificial intelligence in order to improve its processes. Using self-learning computers, the company hopes to sell made-to-measure steel to customers at the same price as steel produced in large volumes. And thus become more competitive.
• The Dutch Presidency wants to build on these modernising initiatives. We will hold a conference on Industrial Technologies in Amsterdam and the Slovak presidency will organise the conference Reindustrialisation in Europe in Bratislava. During those conferences, delegates from industry and science will further explore the opportunities.

About next steps

• Ladies and gentlemen, we are in the middle of the 4th industrial revolution. Industry emerged from previous transitions more productive and more focused on what consumers want. The road was often long, and rarely easy. I am sure this revolution will be no exception. But today we have taken another step in the right direction.
• I have put steel on the agenda of the upcoming Competiveness Council on 29 February. The Commission will then build on today's debate, presenting its own analysis and proposals for further action. Further discussions on the issue of anti-dumping will of course take place in the Foreign Affairs Council.
• And so we are taking steps on several fronts, and we are gaining ground. Let us ensure that energy-intensive industries in Europe remain competitive. That they remain the preferred supplier of companies the world over.

Thank you.