The Glass Alliance Europe had recently called on the European Commission to take action to keep the price of natural gas in check. Now EC President Ursular von der Leyen has responded.
‘It is encouraging for all actors in the glass sector to hear that, at the highest political level, there is a recognition that the glass industry needs to continuously access energy – and at affordable costs’, declares Bertrand Cazes, Secretary General of Glass Alliance Europe.
The present energy crisis dangerously weakens Europe’s glass industry with suspension of activities announced by some companies. It needs to remain viable to continue producing in Europe all glass products essential in many critical value chains such as the food, beverage, building and infrastructure, transport, pharmaceuticals and renewable energy sectors.
Energy is a substantial part of glass production cost
The Glass Alliance Europe highlights that energy costs represent a substantial share of glass production costs, yet the glass industry is so far not entitled to a dedicated support scheme from the EU. The announced ‘targeted support’ should therefore be put in place rapidly and be designed to respond to the needs of the glass industry:
See also: How is a float glass production without natural gas possible?
Firstly, urgent and decisive action to curb the price of natural gas is needed to provide relief to the glass industry, which is dependent on natural gas for heating its furnaces. ‘Without mechanisms that drastically slash the price of gas, terribly harsh months ahead are to be feared in the glass sector’, adds Bertrand Cazes.
Some action can be taken almost immediately
The Glass Alliance Europe further calls on the European Commission to revise two state aid guideline regimes, which it could do almost immediately:
- The guidelines on ‘indirect costs under the EU ETS’, to make sure that all glass sectors become eligible for indirect costs compensation for their soaring electricity costs.
- The guidelines on the ‘temporary crisis framework’, to extend their validity, increase the financial cap, and to relax qualification criteria, which dangerously delay the granting of support to the industry.
