EPCF Report—3 December 2014 1

European Parliament Ceramics Forum EPCF Report—3 December 2014

More than 100 participants attended the 15th Plenary meeting of the European Parliament Ceramics Fo-rum (EPCF) held on 3 December 2014 in the European Parliament in Brussels and chaired by MEP Paul Rübig.

Members of the European Parliament, European Commission officials and industry representatives debat-ed key policy issues relevant to the ceramic industry and under discussion at European level.

The three panel debates were followed by a cocktail reception with a keynote speech by Mr Daniel Calleja Crespo, Director General of DG Enterprise and Industry.

1. Resource efficiency & Sustainable construction

Making the circular economy a reality

2. Trade & Competitiveness

Enabling SMEs to compete at international level

3. Climate & Energy

Streamlining industrial competitiveness in post 2020 EU ETS

Ceramic cocktail

Cerame-Unie reception with keynote speakers

EPCF Report—3 December 2014 2

After an opening statement by EPCF Chair MEP Paul Rübig, a first group of panelists debated resource efficiency and sustainable construction. In particular they addressed how to make the circular economy a reality.

The panel was chaired by EPCF Vice-Chair MEP Neena Gill, who is personally invested in the ceramic industry through her constituency in the UK. Ms Gill is of the opinion that Europe’s transformation from a linear to a circular economy concerns every European citizen. Further-more, the ceramic industry is active in making it a reality by promoting lifecycle-thinking in its Manifesto and by providing durable products which can be reused or recycled.

Mr Hugo Maria Schally, Head of Unit at DG Environment, gave insight into the variety of opportunities the Circular Economy Package presents to in-dustry. The European Commission calculated that increasing resource effi-ciency bears a saving potential of about € 630 bn, thus contributing to economic growth and competitiveness. Mr Schally suggested that the shift from a linear to a circular economy should be driven by industry innovations as well as by cooperation across sectors and value chains.

Director General of IMA-Europe Dr Michelle Wyart-Remy introduced the industrial minerals sector, an important upstream partner for the ceramic industry, outlining how resource efficiency starts with raw materials. Dr Wyart-Remy opposed the resource effi-ciency indicator proposed by the European Commission in the Communication on Circular Economy. A weight-based indicator cannot help assess the environmental impact of a raw ma-terial or product nor its value to the economy in terms of functionality and performance.

Mr Mattia Pellegrini, Head of Unit at DG Enterprise and Industry, spoke on the Commission’s raw material initiative. It is based on three pillars: foster-ing EU-internal raw material supply; increasing access to raw materials from third countries; and improving and increasing the recycling of raw materials. Many EU policies such as the Cli-mate and Energy Package or the Waste Framework Directive stress the importance of recycling raw materials and part of the funding made available through the Horizon 2020 research and innovation programme is directed towards raw materials.

Dr Heimo Scheuch, Vice-President of Cerame-Unie, Vice-President of Tiles and Bricks Europe and CEO of Wienerberger AG, outlined that by supplying sustainable, high quality products, the ceramic industry has proved itself a successful global competitor. Re-source efficiency in ceramics is clearly demonstrated by the long use phase of ceramic prod-ucts, after which they can be recycled or reused, as well as by the industry’s effort to seek effi-cient solutions through research and innovation. Dr Scheuch supported Dr Wyart-Remy’s mes-sage that the currently proposed indicator for resource efficiency is unfit. Strategies for increas-ing resource efficiency have to take into account the specificities of each sector. Resource effi-ciency should not be about “using less” but about “using better”.

MEP Gill

Mr Schally

Mr Pellegrini

Dr Wyart-Remy

Dr Scheuch

1. Resource Efficiency & Sustainable Construction Making the circular economy a reality

EPCF Report—3 December 2014 3

The second panel on trade and competitiveness addressed how SMEs can be enabled to compete at an interna-tional level.

EPCF Vice-Chair MEP Anthea McIntyre led the debate. She noted the importance of the ceram-ic industry to her constituency in the UK in terms of jobs. MEP McIntyre recalled that 85% of new jobs are created by SMEs like the ones in the ceramic industry. She also drew attention to the relevance of energy costs in the production of ceramics and advocated for minimising the divergence between European energy prices and prices in other global regions. This divergence harms the competitiveness of the ceramic industry.

EPCF Vice-Chair MEP Inmaculada Rodríguez-Piñero focused on the im-portance of trade for the ceramic industry. As an export champion, the

industry relies heavily on market access. She called for trade policy that facilitates access to markets in third countries, continued bilateral trade negotiations and implementation of WTO legislation. She emphasised that SMEs cannot compete if practices on global markets are unfair and encouraged the development and implementation of strong tools that help tackle unfair market practices. Furthermore, MEP Rodríguez-Piñero argued that strong market surveillance and protecting intellectual property rights can contribute to the competitiveness of the ceramic industry.

EPCF Vice-Chair MEP Jean-Paul Denanot explained that the ceramic industry has not only a long tradition but also a culture of innovation. Ceramic components can be found in modern tech-nologies in the areas of medicine, electronics, security and more. MEP Denanot is certain that new materials and products developed by the ceramic industry can help tackle the challenges of the future. Lacking networks and financial resources can prevent research and innovation in an industry sector predominantly composed of SMEs. MEP Denanot is convinced that SMEs need to be supported so they can carry out research and develop products that uphold the Eu-ropean ceramic industry’s position as a global leader.

Mr José Luis Lanuza, President of the European Ceramic Tiles Association and Director General of Grupo Keraben agreed that the ceramic industry is not only an industry rich in tradition and history but also supplies state of the art products with regards to design as well as technology. The positive trade balance of € 5 bn clearly reflects the strong position of the European indus-try. Mr Lanuza added that the further growth of the industry relies heavily on market condi-tions. Access to third markets, fair competition and market surveillance need to be improved in order to create a level playing field for all.

MEP Rodríguez-Piñero

MEP McIntyre

2. Trade & Competitiveness Enabling SMEs to compete at international level

MEP Denanot

Mr Lanuza

EPCF Report—3 December 2014 4

EPCF Chair MEP Paul Rübig facilitated the discussion on the Climate and Energy panel. Panelists debated how industrial competitiveness could be streamlined in the post 2020 EU Emissions Trading Scheme (ETS).

MEP Antonio Tajani, Vice-President of the European Parliament and EPCF Vice-Chair, stressed that the EU needs to strike a balance between ambitious climate policy and industrial policy. Industry and especially SMEs are crucial for overcoming the economic crisis in Europe. Other European institutions should answer the European Council’s call for a strong industrial base for Europe. This includes addressing high energy prices for energy intensive industries like ceram-ics. A sound framework for investments and clear rules for the post 2020 ETS and the market stability reserve (MSR) should be put in place as soon as possible.

Ms Mary Veronica Tovšak Pleterski, Director at DG Climate Action, stated that the EU has historically balanced climate and industrial policies. The EU

was a pioneer in the development of its Emissions Trading Scheme and other countries around the world are starting to follow its lead. Europe should maintain its leading position in this area and continue incentivising cost-effective climate action across the economy by reforming the ETS and implementing the MSR. Ms Tovšak Pleterski called for investment in research and inno-vation in low carbon technologies. Furthermore, she thanked Cerame-Unie for its continuous

input and expertise on climate and energy policy.

Mr Carlo Pettinelli, Director at DG Enterprise and Industry, explained that the EU ETS will re-main in place with some free allocation also after 2020. Industry should not be penalised for overcoming the economic crisis and increasing production. This would be counteractive to reaching the goal of a reindustrialised Europe where 20% of GDP is generated by industry in 2020. The ETS needs to be simple, predictable and effective. It has to support reaching the cli-mate and energy objectives set out by the European Council but at the same time should not harm economic growth.

Mr Alexandre Affre, Director of Industrial Affairs at BUSINESSEUROPE, em-phasised the importance of international climate negotiations in Lima in view of the climate summit in Paris in 2015. He highlighted the most relevant measures in the field of energy secu-rity, namely the completion of the internal energy market, the diversification of energy sources both domestically and internationally. In Mr Affre’s view, the ETS should remain a predictable market-based instrument. Therefore, it should not be reformed before 2020 and energy inten-sive industries should be adequately compensated for their direct and indirect costs.

Dr Laura Cohen, Chief Executive of the British Ceramic Confederation, ex-plained that investment cycles in the industry are very long as a kiln can last more than 40 years. Therefore, Dr Cohen called for a stable legal framework and not to alter the ETS before 2020. She stressed that the reform of the ETS should address the technical and economic feasi-bility for each sector and that carbon leakage protection should be proportionate to the level of climate ambition including indirect emissions. Leakage protection is essential for energy in-tensive industries like ceramics in the absence of equivalent climate commitments and measures in non-EU countries. The discussions surrounding the Market Stability Re-serve should be considered in the context of the whole a structural reform of the ETS.

3. Climate & Energy Streamlining industrial competitiveness in post 2020 EU ETS

MEP Tajani

Ms Tovšak Pleterski

Mr Pettinelli

Mr Affre

Dr Cohen

EPCF Report—3 December 2014 5

Following the panel debates Cerame-Unie, the European Ceramic Industry Association, hosted a cocktail recep-tion. Renaud Batier, Director General of Cerame-Unie, welcomed the participants and Mr Daniel Calleja Crespo, Director General of DG Enterprise and Industry, gave the keynote speech.

Mr Calleja Crespo underlined the importance of industry in overcoming the economic crisis in Europe and highlight-ed that increased investment in industry must be enabled if the EU is to reach the target of deriving 20% of its GDP from industry by 2020. He explained how producing high quality products, providing skilled labour and finding inno-vative and efficient solutions to problems have made the ceramic industry a prime example for European business-es.

The unfavourable environment many enterprises are currently operating in can be improved by facilitating access to finance and the internationalisation of SMEs. Another crucial point is the completion of the European Energy Union and reforming the EU ETS into a simple, effective and predictable system that can prevent carbon leakage. Mr Calleja Crespo stressed that these goals can only be reached if cooperation between European institutions and industry continues. He encouraged the active participation of the ceramic industry in the upcoming discussions on the Commission’s strategy for reindustrialising Europe. Mr Calleja Crespo believes that a successful ceramic indus-try can contribute to economic growth, skilled jobs and a more prosperous society.

EPCF Chair MEP Paul Rübig explained that input from stakeholders – notably through a platform such as the EPCF – is crucial to the creation of effective legislation. The 15th EPCF Plenary shed light on important topics and demon-strated the industry’s need for a clear legislative framework, particularly in the area of climate and energy. In order to maintain Europe’s global competitiveness and preserve its industrial base, legislation on EU ETS has to effectively address the risk of carbon leakage.

Concluding a successful event, Dr Heimo Scheuch thanked all participants and stressed that their taking part is the basis for creating a positive environment for the ceramic industry. He recalled that the choices made by European leaders affect more than 200,000 people working directly for the industry. This skilled workforce generates a pro-duction value of over € 27 bn per year, mostly in small and medium sized enterprises, and contributes to prosperity in Europe. He highlighted how important it is to address key issues together in order to sustain the ceramic industry in Europe.

For more information on the EPCF and on how MEPs can become official members visit www.epceramicsforum.eu. To find out more about the European ceramic industry, read the 2014-2019 Manifesto or visit www.cerameunie.eu.

Speakers: Mr Daniel Calleja Crespo, MEP Paul Rübig,

Dr Heimo Scheuch, Mr Renaud Batier

Ceramic Cocktail Cerame-Unie reception with keynote speakers