BRUSSELS, May 29, 2017 /PRNewswire/ --

To the Heads of State and governments of the European Union,

We, the undersigned CEOs of the European steel industry, are writing to you ahead of the final negotiations on the reform of the EU Emissions Trading System (EU ETS).

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We agree that climate change is a critical issue that urgently needs to be addressed at international level, and we fully support efforts to reduce CO2 emissions cost effectively across the whole EU economy.

In the weeks ahead, you will have the final opportunity to shape an EU ETS that better addresses these objectives while preserving Europe's steel industry and the millions of employees it supports. You can avoid burdening the sector with high costs that will constrict investment, or that will increase the risk of job losses and plant closures in the EU.

The steel sector pulls its weight in lowering CO2 emissions. However, with technically unachievable steel benchmarks, the EU ETS legislation creates high carbon costs for even the best performing steel plants, despite the fact that the sector has been unambiguously recognised in the European Commission's own Impact Assessment as being at very high risk of carbon leakage. In its current form, the EU ETS favours steel imports from third country competitors that do not have such costs and which have a far higher carbon footprint than steel made in the EU.

Were the EU ETS directive to be adopted without some of the improvements requested by the European Parliament there would be a shortage of emissions allowances for our industry of around 35% by 2030. There will be no spare allowances from previous years available to alleviate the impact of the post 2020 period in the steel industry. In addition, the sector would be even more exposed to the carbon cost pass-through in electricity prices. Other industry sectors under the EU ETS do not face these constraints to the same degree.

We therefore call upon you to help preserve the sustainability and global competitiveness of the European steel industry. Europe must be able to produce the innovative steels that underpin modern society - and that help reduce CO2 emissions.

It is essential that the improvements that have been agreed by the European Parliament on waste gases, auctioning share, cross sectoral-correction factor and indirect costs are also adopted by the Council. This will help to ensure reform that encourages climate protection and the fulfilment of the EU's CO2 reduction commitments, while also limiting the impact upon the European steel industry's competitiveness, ability to innovate and the jobs it supports.

Yours sincerely,


   
          Aditya Mittal         Francesc Rubiralta Rubio        Antonio Gozzi
               CEO                  Chairman and CEO              President
       ArcelorMittal Europe           CELSA Group                Federacciai

          
         Martin Lindqvist             Claudio Riva          Heinz Jörg Fuhrmann
               CEO                     President                     CEO
      SSAB Svenskt Stahl AB       Riva Forni Elettrici          Salzgitter AG

                                                             Herbert Eibensteiner
                                    Andreas J. Goss       Head of the Steel Division
           Hans Fischer                   CEO                 and Member of the
           CEO and CTO         thyssenKrupp Steel Europe       Management Board
      Tata Steel Europe Ltd                AG                   voestalpine AG

        Bernardo Velazquez                                       Fred Metzken
             Herreros               Carlos Álvarez                   CFO
               CEO                        CEO                  AG der Dillinger
           Acerinox SA         Aceros Inoxidables Olarra        Hüttenwerke

                                 Catherine Tissot-Colle
     Francisco Javier Sanchez         Présidente               Timoteo Di Maulo
               CEO               Alliance des Minerais               CEO
    AG Siderurgica Balboa S.A. Minéraux et Métaux - A3M             Aperam

        Cristian Gradinaru          Eduardo Samblas
               CEO                        CEO                    Gilles Peru
       ArcelorMittal Roman       ArcelorMittal Tubular               CEO
         Tubular Products        Products Ostrava a.s.            Ascometal

         Denis Hugelmann             Wim Van Gerven             Andreas Hauger
           Président                   President                     CEO
          Aubert & Duval        Belgian Steel Federation     Benteler Steel/Tube

                               Michel Hamy/Markus Menges       Politimi Paunova
         Peter Bernscher            Director General          Executive Director
               CEO             BSW - Badische Stahlwerke   Bulgarian Association of
          British Steel                   GmbH            the Metallurgical Industry

           Jerzy Kozicz              Jürgen Alex
      Chairman of Management      Member of the Board           Antonio Gozzi
              Board             Deutsche Edelstahlwerke              CEO
            CMC Poland                    GmbH             Duferco Industria Group

           Hans Lammert           Dominique Richardot            Armin Kauls
        Managing Director        Secrétaire Général           Managing Director
    Edelstahl-Vereinigung E.V.            ESTA                ESW RÖHRENWERKE

                                     Roman Stiftner             Peter Behrend
      Michele Della Briotta        Managing Director              President
        Managing Director      Fachverband Bergwerke und       Fachvereinigung
          Europe Tenaris                 Stahl               Stahlflanschen e.V.

         Giuseppe Pasini            Mario Caldonazzo           Antonius Deelen
            President                     CEO                        CEO
          Feralpi Group                Finarvedi                  FNsteel bv

            Frank Koch
               CEO                 George Skindilias          Vassileios Goumas
    Georgsmarienhütte Holding     Vice-President and CEO              CEO
               GmbH                Halyvourgiki Inc.         Hellenic Halyvourgia

                                                             Evgeny Tankhilevich
                                                                     CEO
         Melker Jernberg             Jaroslav Raab           ISD Dunaferr Danube
               CEO                 Executive Director     Ironworks Private Company
           Höganäs AB               Hutnictvi Zeleza          Limited by Shares

                               S. Zeilberger, K. Rummler,
        Anatolii Fediaiev               J. Henze                Markus Ritter
      President of the Board    Members of the Executive      Managing Director
       ISD Huta Czestochowa              Board             Marienhütte Stahl- und
            Sp.z.o.o.             Lech-Stahlwerke GmbH          Walzwerk GmbH

                                    Kimmo Järvinen
                                   Managing Director              Roberto Re
    José Enrique Freire Arteta     Metallinjalostajat -       Commercial Director
        President and CEO      Association of the Finnish  Metinvest International
              Megasa           Steel and Metal Producers          Italy sarl

          Robert Móger                                        Filippo Gottardis
             Director                  Ben De Vos            International Sales
    MVAE - Association of the             CEO                      Director
     Hungarian Steel Industry    NLMK International BV       Officine Tecnosider

           Roeland Baan              Marcus Hedblom            Stefan Dzienniak
         President & CEO                  CEO               President of the Board
          Outokumpu Oyj                 Ovako AB           Polish Steel Association

                                                               Petra Einarsson
         Viktor Dembitsky           Michael Müller                   CEO
               CEO                        CEO                 Sandvik Materials
         Promet Steel JSC             Saarstahl AG              Technology AB

                                                          José Enrique Freire Arteta
                                                                  President
        José A. Jainaga             Nikolaos Mariou         Siderurgia Nacional -
        President and CEO           General Manager       Empresa de Produtos Longos
    Sidenor Aceros Especiales     Sidenor SA - Greece                S.A.

      Siegfried Gierl, Harry
            Nimmerjahn               Denis Mancevic              Bo-Erik Pers
        Managing Directors                CEO                        CEO
     Rohrwerk Maxhütte GmbH    SIJ Slovenian Steel Group         Jernkontoret

       Alexander Alexandrov            Jan Czudek               Jesus Esmoris
         General Manager                  CEO                        CEO
       Stomana Industry SA       Trinecke Zelezarny AS             Tubacex

                                                               Patrick Lamarque
         Guillermo Ulacia           Scott D. Buckiso              d'Arrouzat
     Executive Vice-President          President                     CEO
       Tubos Reunidos Group        U.S. Steel Kosice               Ugitech

                                    Gonzalo Urquijo
           Gareth Stace                President                  Ionel Bors
             Director             UNESID Spanish Steel            President
          UK Steel - EEF              Association                UniRomSider

                                     Dmitrij Scuka          Hans Jürgen Kerkhoff
         Philippe Crouzet       CEO and Chairman of the           President
    Président du Directoire              Board              Wirtschaftsvereinigung
            Vallourec             Vitkovice Steel a.s.              Stahl
                                  Geert Van Poelvoorde
                                       President
                                        EUROFER

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