Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113232
Authors: 
Neuhoff, Karsten
Ancygier, Andrzej
Ponssard, Jean-Pierre
Quirion, Philippe
Sabio, Nagore
Sartor, Oliver
Sato, Misato
Schoop, Anne
Year of Publication: 
2015
Citation: 
[Journal:] DIW Economic Bulletin [ISSN:] 2192-7219 [Volume:] 5 [Year:] 2015 [Issue:] 28/29 [Pages:] 387-395
Abstract: 
Since 2007, the European cement and steel sectors have been characterized by substantial surplus production capacity. Hence re-investment in primary production of many materials remains limited and endangers the longer-term economic viability of many plants. Opportunities for innovation and modernization could overcome these challenges. They are linked to new demands for more efficient and lower-carbon production processes, higher-value materials with less weight and carbon intensity, and new applications in construction, transport and the energy sector. Only a limited share of these opportunities has been captured so far, which can be attributed to the policies implemented to date. For the future realization of innovation and modernization opportunities, a clear longer-term perspective is required in three policy elements. First, an effective carbon price emerging from the European Union Emissions Trading System (EU ETS) that is relevant both for producers, to facilitate switching to lower-carbon production, and also for intermediate and final consumers to create a viable long-term business case for large-scale investments in lower carbon processes, materials, and efficient use. Second, public funding for the innovation and demonstration of breakthrough technologies. Third, institutional arrangements including aspects like norms and standards as well as provisions for training of craftsmen need to be adjusted to enable the use of new production processes and materials.
Subjects: 
Energy Intensive Industries
Materials
Steel
Cement
Mitigation
EU ETS
JEL: 
L20
L61
Q50
Document Type: 
Article

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