Dear Readers and BV Glas Members,
The economic environment in the German and European glass industries remains difficult. So far, the anticipated recovery has failed to materialise, and further site closures in Germany highlight the severity of the situation.
We continue to face major structural challenges. Energy costs are still unsustainably high, severely undermining Germany’s competitiveness as a business location. This makes targeted political intervention to ease the situation more important than ever. While an industrial electricity price is the right approach in principle, the measure has failed to deliver any tangible impact for our sector to date. One major achievement is the inclusion of the flat and hollow glass sectors in the electricity price compensation scheme – a result for which BV Glas had lobbied for intensively.
However, the future grid fee framework is still a concern. The policy objective of introducing greater incentives for flexible electricity consumption stands in stark contrast to the operational realities of our industry. Glass production relies on continuous manufacturing processes, and our capacity for flexible energy consumption is therefore inherently limited. To support this position, BV Glas published a study demonstrating the very limited scope for greater energy flexibility and we are maintaining active dialogue with the Federal Network Agency.
We expect the implementation of the Industrial Emissions Directive (IED) in Germany to result in a considerably higher administrative burden. In several respects, the German implementation overreaches – effectively gold-plating the already demanding European requirements. This means additional reporting obligations and procedural complexities that offer no environmental policy benefits. We are lobbying for a practical and proportionate implementation framework that supports rather than hinders the transformation process.
Another key challenge arises from the entry into force of the European Packaging Regulation (PPWR) in mid-August. At present, there remains considerable uncertainty over who is responsible for implementing the new requirements and how.
Alongside these industrial policy issues, however, there are also positive signs coming from the market. A survey carried out by Aktionsforum Glasverpackung in collaboration with YouGov shows that the vast majority of consumers prefer products in glass packaging; a positive message for manufacturers during this challenging phase.
In these difficult times, the unwavering commitment of our member companies to the work of the association is invaluable. I would therefore like to express my sincere gratitude to all our staff, to the management of our member companies, who engage so actively with our work, and to the team at the BV Glas head office. They all play a fundamental role in ensuring that the interests of our industry are effectively represented.
