Euratex warns of energy price toll on textiles companies
European textiles industry association Euratex has called on the European Commission and member states to urgently support the industry to avoid company closures due to energy price rises.
It said as there are few alternatives to gas in manufacturing, production costs are increasing sharply.
Euratex has presented 10 requirements to Kadri Simson, European Commissioner for Energy:
1. The apparel and textile industry needs a safe supply with sufficient green energy (electricity and gas) at internationally competitive prices.
2. The transformation of industry requires access to significant amounts of renewable energy at competitive costs. Additional investments in infrastructure will also be needed to guarantee access to new renewable energy supplies.
3. Until a global (or at least G20 level) carbon price or other means for a global level playing field in climate protection are implemented, competitive prices for green energy must be granted at European or national levels (e.g. CCfDs, reduction on levies, targeted subsidies).
4. As the European textile and clothing sector faces global competition mainly from countries/regions with less stringent climate ambitions, it important that they are prevented from direct and indirect carbon leakage.
5. EU policy should support solutions, for example through targeted subsidies (for hydrogen, energy grids, R&D, technology roadmap studies).
6. A dedicated approach for SMEs might be appropriate to improve energy efficiency.
7. CAPEX and OPEX [financial] support will be necessary for breakthrough technologies, like hydrogen.
8. The Fit-for-55-Package must support the European textile and clothing industry in decarbonisation and carbon neutrality. The EU must advocate a global level playing field more than before. The primary goal must be to establish an internationally uniform, binding CO2 pricing, preferably in the form of a standard at G-7 / G-20 level.
9. EU policy must not hinder solutions.
10. The European Textile and Clothing industry has made use of economically viable potentials to continuously improve energy efficiency over many years and decades. The obligation to implement further measures must be taken considering investment cycles that are in line with practice.
The EU textile and clothing industry encompasses around 154,000 companies employing 1.47 million workers.
