VIK: Carbon leakage ordinance not enough to relieve burden on industry

The German Association of Industrial Energy Consumers (VIK), Berlin/Germany, welcomes the agreement reached within the German government on the Carbon Leakage Ordinance. However, despite the improvements made compared to the draft bill, a number of key points remain unsatisfactory for the industry. The list of eligible sectors, i. e., excludes key companies and the amount expected in return reduces the financial relief actually granted to an uneconomically low amount. Christian Seyfert, Managing Director of VIK, says: “This process unreasonably restricts companies’ financial room for manoeuvre. What the government actually considers to be environmentally friendly investments remains completely unclear. In the current situation, however, it is more important than ever to ensure legal certainty and clearly formulated circumstances for relief without impacting companies’ liquidity.” The VIK wants the ordinance to be improved to ensure that Germany as a business location is not weakened compared to countries outside the EU in the long term. Seyfert warns: “For Germany to be a strong business location, we need a policy that combines climate protection and competitiveness.” (VIK/Si.)