1. The European lime outlook OCTOBER 2014 ILA, GENERAL ASSEMBLY, VANCOUVER MS. ELENI DESPOTOU

2. Overview of the presentation EuLA: who are we? EU lime markets Quicklime production EU lime industry challenges Conclusions

3. Who we are: The European Lime Association, created in 1990, is the voice of the European lime sector. EuLA provides sector-base representation for the lime industry at European level, including technical, scientific and administrative support to its members on non- commercial issues. This includes: Addressing the current complex legislative framework; Speaking with one voice on scientific and technical dossiers; Managing horizontal sectorial issues of common concern including sustainable development, Corporate Social Responsibility, Health & Safety, Environmental Protection, Energy, Communications and end-of-use product legislation; Promoting Best Practices.

4. EuLA Members CountryNational association AustriaFachverband der Sten-und keramischen industrie BelgiumFEDIEX BulgariaPlena Bulgaria OOD Czech RepublicCzech Lime Association DenmarkFaxe kalk EstoniaNordkalk FinlandFinish Lime association c/o Nordkalk Corporation FranceUnion des Producteurs de Chaux GermanyBundesverband der Deutschen Kalkindustrie GreeceHellenic Lime Association HungaryCarmeuse Hungaria Kft IrelandClogrennane Lime Ltd ItalyCAGEMA NorwayFranzefoss Bruk A/S PolandThe Polish Lime Association PortugalLucical/ Calcidrata Slovak RepublicCarmeuse Slovakia SpainANCADE SwedenSwedish Lime Association c/o SMA Svenske Mineral AB SwitzerlandKalkfabrik Netstal AG United KingdomBritish Lime Association EuLA Members

5. What EuLA represents

6. Structure General assembly Board Bureau Technical & Environment Committee “Task Forces” Lime Application Committee “Task Forces” Standardisation committee

7. EU Lime Markets

8. EU lime industry challenges Limited growth or no growth Stringent legislation (climate change, environment, energy) EU policy environment Neighbourhood political environment High energy costs and cost competitiveness Result Shrinking of the industry

9. Source: CITL Lime sector – Total CO2 emissions

10. Source: EuLA (database) Quicklime – Process & Combustion CO2

11. Manufacture of lime - Average share of CO2 emissions

12. Manufacture of lime - fuel mix

13. EU legislation EU wordlwide pionner on climate change related legislation New climate and energy package 2030 -43% GHG emissions reductions for industry (binding) -27% RES contribution (binding at EU level) -30% Energy efficiency (indicative) VS -20% target for industry contribution to the EU GDP. (aspirational)

14. Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

15. European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014 Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

16. European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014 Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

17. European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014 Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

18. European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014 Source: European Commission report on “Energy prices and costs in Europe”, SWD(2014)20, January 2014

20. Energy and costs competitiveness As of 2011 the EU dominates the export market for energy-intensive goods, accounting for more than two-thirds of export value, which makes it the largest export region for energy intensive goods. One can expect that regional price disparities increase the risk of reduced production levels and investment in higher priced countries and bring changes in global trade patterns, in particular affecting industries that have a high share of energy costs and are exposed to international competition because their production is easy and relatively cheap to transport. This is supported by analysis undertaken by the IEA in the 2013 World Energy Outlook, which shows that persistently high energy price disparities can lead to important differences in economic structure over time and have far-reaching effects on investment, production and trade patterns.

21. CONCLUSIONS Stagnante market due to stagnante economy Limited new Investment Limited perspective to reverse the trend in a short term New mandate for the EU institutions in place…

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