Cumulative Cost Assessment (CCA) of the EU Glass Industry
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Cumulative Cost Assessment (CCA) of the EU Glass Industry Final Report Written by: CEPS, Economisti Associati and Ecorys June 2017 EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate C — Industrial Transformation and Advanced Value Chains Unit C2 — Resource Efficiency and Raw Materials E-mail: [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Cumulative Cost Assessment (CCA) of the EU Glass Industry Final Report Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs 2017 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2017 ISBN 978-92-79- 68040-3 DOI 10.2873/64877 © European Union, 2017 Reproduction is authorised provided the source is acknowledged. Authors CEPS (Leader) Andrea Renda (Project Director) Felice Simonelli (Project Manager) Jacques Pelkmans Mattia Di Salvo Federica Mustilli Edoardo Storti Christian Egenhofer Eleanor Drabik Katja Tuokko Igor Taranic Fabio Genoese Andrei Marcu Wijnand Stoefs Economisti Associati (Partner) Enrico Giannotti Giacomo Luchetta Ecorys (Partner) Jan Maarten de Vet (Deputy Project Director) Andreas Pauer Olga Abramczyk Elodie Salle Luca Giustozzi Cumulative Cost Assessment of the EU Glass Industry Table of contents List of acronyms ........................................................................................ 5 PART A. METHODOLOGY AND SAMPLE ................................................................ 8 1 General understanding ....................................................................... 9 1.1 Putting the Cumulative Cost Assessment of the EU ceramics and glass industry in context........................................................................... 9 1.2 The rationale and scope of a Cumulative Cost Assessment ................... 10 1.3 Content of the Study....................................................................... 12 2 Methodology ................................................................................... 13 2.1 Proposed methodology for assessing regulatory costs ......................... 13 2.1.1 Direct costs .................................................................... 14 2.1.2 Indirect costs .................................................................. 17 2.1.3 Enforcement costs ........................................................... 18 2.2 Aggregating and cumulating regulatory costs ..................................... 18 2.3 Methodological issues ..................................................................... 20 2.3.1 Business as usual ............................................................ 20 2.3.2 Main cost parameters associated with SOs and IOs .............. 21 2.3.3 Typical year .................................................................... 22 2.3.4 Additional issues.............................................................. 23 2.3.5 Data validation ................................................................ 23 3 Sample .......................................................................................... 25 3.1 Sampling criteria ............................................................................ 25 3.2 Required composition of samples in selected sectors ........................... 28 3.3 Data collection strategy ................................................................... 36 3.4 Sample ......................................................................................... 38 PART B. ASSESSMENT OF REGULATORY COSTS ................................................. 44 4 Legislation covered by the Cumulative Cost Assessment ...................... 45 5 Internal Market legislation ................................................................ 49 5.1 Construction Products Regulation and Directive .................................. 49 5.1.1 Description of the Act ....................................................... 49 5.1.2 Categories of regulatory costs ........................................... 49 5.1.3 Methodological aspects ..................................................... 50 5.1.4 Cost assessment – Flat Glass ............................................ 53 5.2 Internal Market for chemicals ........................................................... 57 5.2.1 Description of the Acts (REACH and CLP) ............................ 57 5.2.2 Methodological aspects ..................................................... 58 5.2.3 General findings relevant to all glass subsectors .................. 58 5.2.4 Cost assessment – Packaging glass .................................... 59 5.2.5 Cost assessment – Flat glass............................................. 61 5.3 Measuring Instruments Directive ...................................................... 63 5.3.1 Description of the Act ....................................................... 63 5.3.2 Methodological aspects ..................................................... 63 5.3.3 Cost assessment – Glass tableware.................................... 63 6 Energy legislation ............................................................................ 65 6.1 Overview and relevance of energy policy for the EU glass sector .......... 65 6.1.1 Global developments in energy prices ................................ 66 6.1.2 Summary of the legislation covered ................................... 67 1 Cumulative Cost Assessment of the EU Glass Industry 6.2 Methodological aspects.................................................................... 68 6.2.1 General aspects ............................................................... 68 6.2.2 Electricity specific aspects ................................................. 70 6.2.3 Natural gas specific aspects .............................................. 72 6.2.4 Energy efficiency specific aspects ...................................... 72 6.3 Overview of the impact of energy costs on production costs ................. 73 6.4 Electricity ...................................................................................... 81 6.4.1 Description of the Acts ..................................................... 81 6.4.2 Categories of regulatory costs ........................................... 83 6.4.3 Cost assessment – Packaging glass .................................... 83 6.4.4 Cost assessment – Glass tableware.................................... 93 6.4.5 Cost assessment – Flat glass........................................... 100 6.5 Gas ............................................................................................ 111 6.5.1 Description of the Acts ................................................... 111 6.5.2 Categories of regulatory costs ......................................... 112 6.5.3 Cost assessment – Packaging glass .................................. 112 6.5.4 Cost assessment – Glass tableware.................................. 122 6.5.5 Cost assessment – Flat glass........................................... 128 6.6 Energy efficiency .......................................................................... 139 6.6.1 Description of the Acts ................................................... 139 6.6.2 Categories of regulatory costs ......................................... 139 6.6.3 Cost assessment – Packaging glass .................................. 139 6.6.4 Cost assessment – Glass tableware.................................. 143 6.6.5 Cost assessment – Flat glass........................................... 145 7 Climate legislation ......................................................................... 149 7.1 Description of the Acts .................................................................. 149 7.2 Phase 1 (2005-07) ....................................................................... 150 7.3 Phase 2 (2008-12) ....................................................................... 150 7.4 Phase 3 (2013-20) ....................................................................... 150 7.5 Categories of regulatory costs ........................................................ 151 7.6 Methodological aspects.................................................................. 152 7.6.1 Data validation .............................................................. 152 7.6.2 Model ........................................................................... 152 7.6.3 Substantive compliance costs .......................................... 153 7.6.4 Indirect costs ................................................................ 153 7.6.5 Administrative burdens .................................................. 154 7.7 Cost assessment – Packaging glass ................................................ 155 7.7.1 Sample ........................................................................ 155 7.7.2 Direct regulatory costs ................................................... 155 7.7.3 Indirect regulatory costs ................................................. 156 7.7.4 Cumulative