1. Aims Competitive Industrial Base (Lisbon jobs and growth) Climate Change (greatest long-term challenge facing the human race) Right Mix/Balance – critical Degree of Step ahead - global consequences (to encourage others to follow) IDENTIFICATION OF THE MAIN ENERGY AND ENVIRONMENTAL FACTORS IMPACTING THE INTERNATIONAL COMPETITIVENESS OF THE ENERGY INTENSIVE INDUSTRY

2. COMPETITIVENESS OF, AND ACCESS TO COST-EFFECTIVE ENERGY INPUTS FOR ENERGY INTENSIVE INDUSTRIES Direct Impacts Energy Global Oil, Gas, and Coal prices. Functioning Market / Transparency Environmental Are the impacts considered cumulatively and holistically, global perspective? Duplication and Conflicting policy objectives – Waste, Air Quality Vs Climate Change.

3. COMPETITIVENESS OF, AND ACCESS TO COST-EFFECTIVE ENERGY INPUTS FOR ENERGY INTENSIVE INDUSTRIES Indirect Impacts Energy Market and Industry Lack of Investment (predictable framework) Different interpretations by Member States distorts level playing field, adds risk and uncertainty. Others Raw Material Natural Resources Product Differentiation Little customer knowledge, and little ability to pass on higher costs

4. COMPETITIVENESS OF, AND ACCESS TO COST-EFFECTIVE ENERGY INPUTS FOR ENERGY INTENSIVE INDUSTRIES Diversify EU Industry base towards less Energy Intensive Sectors? Impact to Global Climate Change Lost opportunity to demonstrate that we can de-couple environmental and competitiveness improvements.

5. COMPETITIVENESS OF, AND ACCESS TO COST-EFFECTIVE ENERGY INPUTS FOR ENERGY INTENSIVE INDUSTRIES What can we do? Develop lower emitting production methods. How? (Significant) Partnership investment in technology. Supported by: Predictable and reliable regulatory framework and economic indicators Energy Efficiency Differentiate in the Market Place Strong need to push others to follow