ALBERT

Description: Energy intensive industries are one of the fields in which strong increases of energy efficiency and deep decarbonisation strategies are particularly challenging. Although European energy intensive industries have already achieved significant energy and greenhouse gas reductions in the past, much remains to be done to make a significant contribution to achieving European as well as national climate mitigation targets of greenhouse gas emission reductions by -80% or more (compared to the baseline of 1990). North Rhine-Westphalia (NRW) is a European hotspot for coping with this challenge, accommodating more than 10% of the energy intensive industries of the EU28. It is also the first German state to have adopted its own Climate Law, enacting state-wide CO2 emission reductions by 80% until 2050 compared to 1990. The state government initiated the project "Platform Climate Protection and Industry North-Rhine Westphalia" to identify and develop the necessary far-reaching low carbon innovation strategies for energy intensive industries. Heart of the project was a dialogue process, which involved a broad spectrum of stakeholders from steel, chemical, aluminium, cement, glass and paper producing industries. Besides enhancing and broadening the knowledge on high efficiency and low-carbon technologies within industries, the aim was to explore possible pathways and preconditions for the application of these technologies in energy intensive industries as well as to strengthen the motivation of companies for initiatives and investments in technologies with lower CO2 emissions. The results of the dialogue shall provide a basis for a possible low-carbon industry roadmap NRW and may also serve as an example for other industrialized regions in the EU and globally. The paper sketches the structured dialogue process with the stakeholders from companies as well as industrial associations and presents the learnings regarding the engagement of energy intensive industries into ambitious climate policies on a regional level. These include existing limitations as well as chances in the respective sectors on the state level, regarding their economic and technical structures as well as their innovation systems. The findings are based on more than a dozen stakeholder workshops with industry companies and more than 150 individual representatives of NRW's energy intensive industries as well as on background research in the initial phase of the project.

Description: This chapter discusses the question of ecologically differentiated value added taxes (VAT) as a tool to overcome tax-related cognitive barriers by connecting to an existing tax system. This is elaborated along several aspects: (a) The role indirect of consumption taxes for the economy, (b) the legal issues of the VAT system, (c) the EU harmonization efforts in this context, (d) the distributional implications of value added taxes. Following this, the chapter develops a proposal for a VAT reform (e). To this end, it looks at potential and existing differentiations between sectors, products and services, and product and service groups and turns to those consumption areas that are widely identified as particularly resource and carbon intensive and sets out how a harmonization of the overall system and an ecological differentiation in single consumption areas could be brought together. Potential impacts and effects are briefly discussed (f) and some conclusions are drawn (g). The subject addressed in the chapter is relevant from a policy perspective but mainly descriptive: It does not use innovative qualitative and quantitative tools.