Brussels, 28 April 2023 • Ref. 23PFP012
Primary Food Processors (PFP) acknowledge the formal adoption of the revised Emissions Trading System (ETS) Directive by EU Member States and reaffirm their commitment to supporting industrial decarbonisation across Europe’s food processing sector.
At the same time, the organisation warns that the revised framework introduces significant competitiveness and implementation challenges for primary food processing industries, which already face increasing energy costs, regulatory pressures and substantial investment needs.
The revised ETS significantly increases climate ambition by raising the emissions reduction target from 43% to 62% by 2030 compared with 2005 levels. According to PFP, achieving these objectives will require extensive industrial transformation, accelerated deployment of low carbon technologies and significant capital investment across energy intensive industries.
PFP stresses that public financial support will play a critical role in enabling the sector to meet future climate obligations. The organisation notes that existing instruments such as the Innovation Fund and the Modernisation Fund may not be sufficient to address the scale of investment required for industrial decarbonisation.
The organisation argues that successful implementation of the revised ETS will require stronger financial support for both innovative and commercially available technologies, together with policy measures that help industries remain competitive throughout the transition.
PFP also expresses concerns regarding the treatment of biomass based installations under the revised framework. Under the adopted rules, installations where biomass combustion emissions exceed 95% of total greenhouse gas emissions will be excluded from the future ETS system.
According to PFP, this approach may create unintended consequences by reducing incentives for companies seeking to complete the transition towards fully renewable energy systems. The organisation believes that climate policies should continue encouraging investment in renewable energy rather than creating uncertainty around future regulatory treatment.
PFP maintains that primary food processors remain fully committed to decarbonisation and to supporting Europe’s climate objectives. However, the organisation emphasises that industrial competitiveness, affordable energy, adequate funding and coherent renewable energy incentives must remain central considerations throughout the implementation of future climate policies.
The association calls for additional EU and national support mechanisms, sufficient financial resources for industrial transformation and policy frameworks that allow food processing industries to remain globally competitive while delivering long term emissions reductions.
PFP brings together the European Starch Industry Association (Starch Europe), the European Vegetable Oil and Proteinmeal Industry (FEDIOL), the European Association of Sugar Manufacturers (CEFS), the European Cocoa Association (ECA), the European Vegetable Protein Association (EUVEPRO), and the European Flour Milling Association (European Flour Millers).
PFP members process approximately 220 million tonnes of raw materials and employ more than 120,000 people across the European Union.
