1. Dutch presidency agenda on ensuring industrial competitiveness Erik Janssen, Ministry of Economic Affairs The Netherlands

2. EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 2 Industrial Competitiveness during NL Presidency Competitiveness Council: -Single market (also for services) -Energy-intensive industry/steel -Circular economy -Support to SMEs -Digitalisation of industry -Better regulation -Research and Innovation -Space

3. Ministry of Economic Affairs EU Refining Forum| 1 March 2016 3 Competitiveness Mainstreaming -Communication For a European Industrial Renaissance, calling for main-streaming of industrial competitiveness in all other policy areas and reinforcing the course to re-industrialization -Objective of mainstreaming is to ensure that the competitiveness of the European economy is better taken into account when new European rules are being developed -Necessity of mainstreaming competitiveness across all other configurations of the Council and discussing genuine economic challenges -Energy, the environment, transport and the labour market are all areas influencing European competitiveness to the extent that they could be discussed by Ministers for Competitiveness

4. Industrial Competitiveness Issues Financing gaps may limit the investments and growth of many EU enterprises Better access to European investment programmes for energy- intensive industries (Investment Plan for Europe) Build on innovation initiatives to create a sustainable industry through resource and energy efficiency (Conference on Industrial Technologies, Amsterdam, June 2016) Comparably high electricity and gas prices vis-à-vis international competitors Energy efficiency improvements have not fully offset the impact of increasing prices Systematic competitiveness proofing by better monitoring of the effects of policy proposals for the competitiveness of industry EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 4

5. Energy and Climate during NL Presidency Energy (Union): - Directive energy labelling - Regulation security of gas supply - Intergovernmental agreements - Market design electricity - Heating and cooling strategy - LNG and storage strategy - Regional cooperation Climate: -Outcome of COP21 -Implementation of climate and energy package 2030 EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 5

6. Paris Climate Conference COP21 -In December 2015, 195 countries agreed a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C -The EU target to reduce emissions is at least 40% by 2030 -Paris agreement laid the basis for a more level playing field for businesses, as other parts of the world will now have to do more on climate policy -During our Presidency, the Netherlands will take steps towards ETS reform on the basis of the Commission’s impact analysis on the Paris Agreement. In line with the 2014 European Council Conclusions, we will work towards a well-functioning ETS that helps achieve our reduction targets while providing guarantees for business competitiveness EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 6

7. ETS The design of the fourth trading period for emissions trading must strike the right balance between competitiveness and the setting of important incentives for innovations in new technologies The reform of the EU’s emissions trading system must attach equal weight to aspects of climate, industrial and employment policy The most efficient industrial installations in sectors at risk of carbon leakage should not be subject to undue carbon costs while incentives for industry to innovate should be maintained Effective protection against carbon, investment and job leakage is important after 2020 until competitors in third countries are subject to similar burdens to the industrial sector in Europe An important element is the compensation for the risk of carbon leakage that should be better aligned with recent production levels and thereby better reflect the real needs of industry EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 7

8. Refining Sector Developments EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 8

9. Refining Sector Importance for EU Economy -There are refineries in 22 EU Member States -119 thousand direct jobs -Total annual turnover 686 billion euros -Total refining capacity 14.7 mb/d (15.5% world), combined throughput 11.6 mb/d in 2013 (BP, 2014) -Refined petroleum products are an important element of extra-EU trade -Responsible for 6.6% of total CO2 emissions of EU in 2012 EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 9

10. Low Oil Price -Due to the current low oil price the European refining sector is currently enjoying higher margins -Questions remain about the medium-term sustainability of low oil prices -World refining capacity is expected to grow by more than 1 million barrels per day in Asia and the Middle East adding to global product supply that could potentially negatively impact European refining margins -Structural problems (overcapacity, high energy costs) remain EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 10

11. EU Refining Fitness Check EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 11

12. Possible Next Steps -The Refining Forum should be continued -In order to safeguard a global level playing field with other global actors, it is important to address regulatory costs that hamper competitiveness -Ensure that the competitiveness of the European economy is better taken into account when new European rules are being developed. Refining Fitness Check is important reference study -It is important to implement the COP21 agreement in such a way as to allow the EU to meet its targets without this negatively impacting on competitiveness and the level playing field for European industry -To prevent carbon leakage, the most efficient industrial installations should not be subject to undue carbon costs EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 12

13. Thank you! E.Janssen@minez.nl EU Refining Forum| 1 March 2016 Ministry of Economic Affairs 13