The European Parliament will hold an event on Jun. 28 to discuss and assess the impact of the Emissions Trading System (ETS) as it works towards gathering evidence to support the policy’s reform. The event builds upon a recent workshop led by the European Chemistry Council, CEFIC. It will be attended by various rapporteurs, trade unions and other relevant stakeholders.

Marco Mensink, CEFIC’s Director General, will present the chemical industry’s views on current proposals to reform the scheme, and particularly on whether tiering is necessary. Tiering involves streaming industry sectors so those perceived to be more at risk from the high costs of EU climate policy receive more generous free carbon allowances.

The ETS, which works by capping the level of greenhouse gas emissions and allowing manufacturers with low emissions to sell their allowances, has been accused of increasing energy prices and making the EU less competitive.

With this in mind, Consultancy Ecofys has been appointed to analyze the impact of nationally determined contributions, or NDCs, on the competitiveness of Europe’s chemical industry.

CEFIC said the sector provides 1.2 million jobs in Europe and brings in more than €550 billion annually, but requires the right framework to consolidate and expand its potential. The association is concerned about companies moving production overseas to escape the EU’s high emissions costs, known as carbon leakage. The EU chemical industry has already cut greenhouse gas emissions by 58% since 1990, CEFIC said.