Striking the balance between Regulation and Competitiveness

Thanks in part to ECI’s efforts, it’s no secret that copper is essential for everyone. It is in our blood, our food and is at the core of many of tomorrow’s technologies. Without copper, continued improvements in energy efficiency, renewable energies, healthcare, smart grids and transportation will not be possible.

In an effort to illustrate copper’s important role in ensuring Europe’s continued competitiveness, ECI organised an exhibition and debate at the European Parliament in June. The goal was to engage in dialogue with key stakeholders, raise awareness of issues the industry is facing, and ensure that regulations designed to increase European competitiveness also take into account the specifics of the copper industry.

Copper Essential for Everyone

Over 3,000 visitors, including MEPs, Commission officials and industry experts, attended the “Copper Essential for Everyone” exhibition from 29 June to 1 July. Through the exhibition, which contained vivid imagery, intriguing facts, short films and various exhibits that displayed copper’s use in mobile phones, renewable energy technologies, car engines and more, attendees discovered where copper comes from and how it is produced. They also learned about the unique properties that place it at the core of many key European industries.

Host MEPs Piotr Borys and Jacek Protasiewicz, from the EPP group, opened the exhibition by emphasising that the EU’s 20/20/20 targets cannot be met without the increased use of copper in end uses such as electric motors, wind turbines and solar thermal panels. They stressed that Europe must strike a balance between promoting competitiveness and creating EU regulations that possibly would endanger the copper industry.

John Schonenberger, Chief Executive of ECI, further underlined that the competitiveness of the European copper industry is important for the development of future technologies such as renewable energies, electric vehicles and the continued miniaturisation of electronic equipment. He highlighted that European copper companies have invested in technologies to reduce environmental emissions and improve energy efficiency. These commitments have enabled Europe to operate the cleanest and most efficient copper smelters in the world. In addition, new processes enable the industry to increase the recycling of complex end of life products and off cuts from the downstream value chain. 40% of Europe’s copper demand is today met through recycling – more than in any other part of the world.

Yet, despite these efforts, the European copper industry continues to face challenges in a globalised world. It must be supported by more balanced regulation that enables the industry to compete with countries that have lower environmental and social standards.

Striking a balance

To raise awareness of this competitiveness issue, ECI hosted a panel debate on 29 June where several high-level spokespersons discussed “How to achieve an appropriate balance between EU policies that focus on sustainability and resource efficiency and those necessary to maintain a competitive business environment in Europe”.

The debate attracted a broad audience and heard arguments for compromise and balancing action from panellists including the two host MEPS; Pavel Misiga, head of unit for Environment and Industry at the European Commission Directorate General for Environment; Bernd Drouven, chief executive officer of Aurubis; Patty Fong, chief operating officer and programme director for energy efficiency at the European Climate Foundation, and Javier Uriarte, general director of marketing and president of ENDESA Energía.

The discussion explored core issues that affect the industry’s competitiveness, including the hotly-debated fact that metal prices are set globally on commodity exchanges while operational costs are local. Panellists argued that this prevents European companies from passing through the higher costs associated with labour, environmental protection and the impact of the third phase of the Emission Trading Scheme (ETS). With around 30% of energy consumption going on environmental protection, the ETS issue highlights the struggle between being an industry committed to high environmental and social standards versus maintaining its ground in a global market.

Outlook

ECI believes the exhibition and debate successfully increased awareness and established a foundation on which policymakers and industry can maintain an open dialogue and ensure that Europe maintains its competitiveness.

Experience the exhibit and panel debate online here, or discover the core principles required to ensure a competitive industry in ECI’s “Manifesto for a Competitive European Copper Industry.”