Glass and ceramics industry

Gist of the opinion

The EU glass and ceramics industry is currently facing a number of challenges to its competitiveness, many of which have been driven by globalisation, increased environmental regulation and rising energy costs. Both sectors are energy-intensive and are exposed to competition from developing countries, which have profited from the more difficult business environment in the EU.

The sectors should be supported in their drive for innovation as this will help the EU industry to strengthen its market position, improve its environmental performance and play a greater role in mitigating climate change. Their inclusion in the EU ETS should be established in a fair manner, which takes into account the life cycle analyses of the entire sectors, the benefits of which far outweigh the related environmental burdens. What is more, these sectors should be exempted for the entire trading period up to 2020 from the auctions of allowances, which would remove considerable investment uncertainties and obstacles.

The impact of the EU energy and climate package on energy prices in the glass and ceramics industry – which also affects upstream supply chains – should be dampened by well-functioning energy markets. It is vital to promote competition in energy markets and the development of a pan-EU electricity grid that will lead to long-term security of energy supply.

There is a need to enforce existing and, if necessary, new regulatory measures which are focused on eliminating unfair trading practices, such as counterfeiting. The "country of origin" could be also part of the solution. Further political support and joint EU action could be helpful in terms of removing import barriers in non-EU markets, improving access to proper market information for SMEs, facilitating access to public procurement exercises in emerging markets and removing trade barriers to raw materials from China.

The excellent environmental performance of many glass and ceramic products should be promoted as an energy-saving benchmark for the EU construction industry. Furthermore, this technology should be included in any envisaged transfer of technology to those non-EU countries with high energy-saving potential. Joint projects (such as CDM) can also help EU producers to offset their own CO2 emissions.

Member State government incentives in the construction industry to favour optimum energy performance of buildings are the best instrument for supporting the glass industry and contributing to climate change policy. Efforts geared towards increasing recovery ratios and subsequent use of recovered glass should be supported extensively, as well.

Any new regulatory act should be considered with much greater care, discussed with stakeholders involved and subjected to a far more rigorous impact assessment.