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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

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Table of Contents ABOUT ECI CHAIRMAN’S MESSAGE CHIEF EXECUTIVE’S MESSAGE FUNDING THE COPPER INDUSTRY IN EUROPE COPPER’S ROLE IN COMBATING CLIMATE CHANGE THE BENEFITS OF USING COPPER ECI AND THE COPPER ALLIANCE ACROSS EUROPE

3 4 7 8 9 14 18 23

Highlights The European Copper Institute (ECI) and its network of national associations in Europe, collectively part of the Copper Alliance, continued its efforts to defend and grow markets for copper, ensure fair market access for copper products, and support the copper industry’s license to operate. This report provides several examples of our work and describes, where appropriate, how they fit into the European legislative agenda. Key 2015 items included advocacy efforts towards the new Energy Union and Circular Economy packages, copper sector technical inputs into the development of the post 2020 Emissions Trading System (ETS), plus the provision of significant scientific and socio-economic data into multiple chemicals management issues, including REACH. As part of our commitment to transparency, ECI has been listed in the EU Transparency Register since 2009. Each year we publish the funding from our member companies and project partners and present openly our key strategic partnerships. ECI is also relatively unique in the Brussels landscape, since its members also provide a mandate to help grow and defend copper and copper alloy markets across the EU. Through integrated marketing communications, intelligence and technical support, in the key areas of Sustainable Energy, Building Construction, Heat Exchange Systems and Transportation, we engage with many downstream industry value chains that rely on copper for their business growth and future innovations. If you are interested to learn more, please visit www.copperalliance.eu


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

About ECI

The European Copper Institute (ECI), headquartered in Brussels since 1998, represents the copper industry in Europe.

A Copper Alliance™ Member A global platform whose mission is to defend and grow markets for copper based on its superior technical performance and its contribution to a higher quality of life.

PROFESSIONAL NETWORK FINLAND

17 Years in Brussels, maintaining industry’s market access and licence to operate

10

UNITED KINGDOM

European Offices

POLAND

BELGIUM/EU GERMANY

FRANCE

40

10M€

Employees from various disciplines

Annual European budget

VALUE CHAIN REPRESENTATION

Producers of copper

Manage the REACH Copper Consortium to maximise industry’s efficiency & cost-effective compliance with the regulation

ITALY SPAIN GREECE

28

45,000

Companies

Direct employees in the European copper industry

Leading manufacturers of semifabricated copper products

Downstream companies exploiting innovative copper-based products and technologies

Cu

WHAT WE DO

HUNGARY

Provide valuable technical support & advice to the copper value chain

Lead industry efforts in human health and environmental science

Demonstrate the benefits of leading edge copper technologies to end-use sectors

Ensure copper’s fair position in codes and standards at national and EU levels


CHAIRMAN’S MESSAGE

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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Recognising the Specificities of Metals in EU Policy Making In line with most commodities, the copper sector experienced significant changes in the past twelve months. Reflecting low GDP rates in most major economies, the International Copper Study Group1 expects the global apparent usage of refined copper to be 22.9 million tonnes, the same as in 2014. In the EU, apparent refined copper usage is expected to decrease by 2% to 3.1 million tonnes. Copper prices fell sharply during the year, resulting in an average 2015 London Metal Exchange price of 5,494 $/T, down 20% (1,368 $/T) versus 2014. Based on mining industry investments made throughout the past five years, global refined copper production increased by 1.5%. However, late in the year, many mining companies announced significant cuts in investment budgets and operating expenses in response to market conditions. While the transparency of metal inventories, particularly in China, makes it difficult to establish an accurate supply/demand balance, the main metal exchange inventories ended the year at around 480,000 tonnes. While this was up 175,000 tonnes since the end of 2014, exchange stocks still only represent around one week’s end-use demand. In the EU, the combination of depressed demand, due to the continued sluggishness in the economy, plus reduced scrap availability due to the lower copper price, have been damaging for the copper semi-fabricating companies and have resulted in job losses. EU regulatory issues affecting the industry’s licence to operate, along with securing fair market access for its products, are only increasing. The copper industry needs transparent, long-term energy and climate change policies that will deliver competitively priced energy. Reforms to the Emissions Trading Scheme must address the competitiveness gap faced by the EU’s energy-intensive industries. The ambitious outcomes from COP21 must not result in undue costs for Europe’s best performers. Continued recognition that the copper sector is a price taker, due to commodity prices being global, must be taken into account when determining the risk of carbon leakage. Finally, a more harmonised, EU-wide scheme needs to provide full compensation for both direct and indirect emissions based on actual production levels.

The specificities of metals production and recycling must be recognised far better in the implementation of the EU’s REACH chemicals management legislation. Policy makers need to recognise the results of extensive, third-party research, carried out over the past decade, in the setting of environmental quality standards and safe limits for human health. The copper alloy industry has invested heavily, either to eliminate lead altogether, or to reduce the levels in finished products to the minimum required to meet strict end-user performance targets. We therefore welcome the recent Commission/Member State decision to accept separate classifications for lead metal and lead powders which will preserve the existing no classification for lead-free alloys. We trust that the Circular Economy package can lead to a further increase in the 40 - 50% of annual EU copper demand that is currently sourced through recycling. However, this ambition to recover, re-use and recycle more of our precious natural resources must not be negatively impacted by over-precaution in the responsible handling of hazardous alloying elements, or in the absence of fair compensation to offset the necessary increases in CO2 emissions and energy consumption. Despite the challenging business environment, I am proud of ECI’s accomplishments throughout the past year. In particular, highlighting that the increased use of copper products can deliver a 25% saving in the EU’s CO2 emissions by 2050. I would like to thank all of the ECI staff, its member companies and the International Copper Association for their support in delivering them.

Dr. Italo Romano KME Group

1 The International Copper Study Group (ICSG) is an inter-governmental organisation, based in Lisbon, which publishes copper production and demand statistics. Visit www.icsg.org for more details.


“The copper industry needs transparent, long-term energy and climate change policies that will deliver competitively priced energy.�


ECI strongly supports the statement made by Maroš Šefcovic, Vice President of the European Commission in charge of the Energy Union, during the June 2015 EU Sustainable Energy Week. “We established and promote energy efficiency first as a fundamental principle of the Energy Union and with it the moderation of demand. This is why we have invited Member States to give energy efficiency primary consideration in their policies and to consider energy efficiency as an energy source in its own right.”


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Given that copper belongs in the basket of EU energyintensive industries, shouldn’t the copper sector be concerned about the core outcome of COP21, which is “to keep a global temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels”? Since copper prices, like most commodities, are global but operating costs are very much local, ECI certainly urges the EU institutions to secure a level playing field for the European copper sector versus other regions of the world. The highest priority areas are to deliver long-term, more equitable energy prices, to have the price-taker element retained in the post-2020 ETS proposal, and to avoid adopting over-precautionary limit values under various chemicals management regulations. Especially in the current, very poor economic environment, the copper sector needs breathing space to continue to invest in innovation for both products and processes, especially those that encourage recycling. The reason for optimism, however, is that delivering on the COP21 outcome will require far greater use of the products and systems that exploit copper’s superior thermal and electrical conductivities. Last September, ECI published a roadmap for the copper sector that contains strategies that will both trigger and support substantial carbon reductions in the downstream industrial, residential and service sectors. By 2020, seven copper-based technology areas could deliver 130 million tonnes of CO2 savings per year. This amount would grow steadily and, by 2050, total EU CO2 emissions could be reduced by 25% - more than 1,100 million tonnes per year - relative to 2011 levels. ECI therefore strongly supports the statement made by Maroš Šefcovic, Vice President of the European Commission in charge of the Energy Union, during the June 2015 EU Sustainable Energy Week.

“We established and promote energy efficiency first as a fundamental principle of the Energy Union and with it the moderation of demand. This is why we have invited Member States to give energy efficiency primary consideration in their policies and to consider energy efficiency as an energy source in its own right.” To strengthen advocacy on the policies needed to deliver energy efficiency first, ECI is an active member of both the Coalition for Energy Savings, the Energy Efficiency Industrial Forum and the Renewable Heating & Cooling Technology Platform, all of which are contributing strongly to the many ongoing consultations on EU energy policies. We also value our partnerships. Throughout its 17 years in Brussels, ECI has built up a strong network, by engaging with a broad range of stakeholders in a transparent way, in order to secure fair market access for copper products, while maintaining the competitiveness of the industry that supplies them. If you would like to learn more about copper, the benefits to society provided by its products, or the industry’s views on current policy and regulatory issues, please visit www.copperalliance.eu.

John Schonenberger Chief Executive European Copper Institute

CHIEF EXECUTIVE’S MESSAGE

Copper-based Technologies Could Deliver 130 Million Tonnes of CO2 Savings per Year by 2020

7


Copper Alliance members operating in Europe

2015 Funding

Member companies listed here are those that have assets or operations, employ people and pay taxes within the EU. They include members of the International Copper Association. For a full list, visit www.copperalliance.org

ECI, plus its network of national Copper Alliance partners, operated with a 2015 budget of E10 million ($13 million) to develop and carry out promotional and regulatory affairs activities. While the International Copper Association, representing the world’s leading mining companies, independent smelter/refiners (metal producers) and semi-fabricated product manufacturers, provided 80% of this budget, European member staff devoted significant time and contributed much-needed value chain intelligence into program design, regulatory issue management and national authority advocacy. Over 100 partners, including the United Nations, national energy agencies, academic institutions, consultancies and industrial companies, continue to provide strong support for ECI’s Leonardo ENERGY program, which promotes broadly the sustainable generation, distribution and use of electrical energy.

ICA Funding

European Industry Funding

Building Construction Non-Electrical

$3.000

$1.000

$4.000

Wire and Cable

$1.900

$100

$2.000

Energy Policies and Efficiency Standards

$1.800

$100

$1.900

Heat Exchange Systems

$600

$0

$600

Technical and Market Support

$800

$500

$1.300

Health, Environment, and Sustainable Development

$700

$500

$1.200

Communications

$1.100

$200

$1.300

Governance and Administration

$800

$200

$1.000

Total Funds

$10.700

$2.600

$13.300

Strategic Initative

($000)

Total

E UROPE


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

The Copper Industry in Europe Ensuring a Value Chain Approach ECI’s members include the EU’s top six copper producers, Europe’s leading manufacturers of semi-fabricated copper products, plus downstream companies which exploit copper’s performance in multiple end-use applications. The front end of the copper value chain, which employs around 45,000 persons, is made up of three very distinct sectors: • Mining companies who extract naturally occurring ores and convert them into concentrates, which are composed of roughly equal quantities of copper, plus sulphur and iron containing materials. Depending on the ore quality, mining companies may also produce other metals such as cobalt and molybdenum. • Copper producers, usually referred to as smelters and refiners, who convert concentrates, imported intermediate materials and end-of-life scrap into copper metal (cathodes). This process also generates important quantities of many other valuable metals, including gold and silver. • Semi-fabricators then convert this metal, along with clean scrap, into products, such as wire-rod, tubes, sheet and strip, that are used and drive innovation down the value chain.

Board of Directors (at 1st April 2015) Joel Adams (GLENCORE) Stefan Boel (AURUBIS) Augenija Di Bucci (BHP BILLITON) Gonzalo Cuadra (CODELCO) - Vice Chairman Oriol Guixà (LA FARGA) Jussi Helavirta (LUVATA) Sven Hjelmstedt (BOLIDEN) Bernd Kaimer (SANHA) Henryk Karas (KGHM) Evangelos Moustakas (HALCOR) Italo Romano (KME Group) - Chairman Javier Targhetta (FREEPORT MCMORAN COPPER & GOLD) Werner Traa (WIELAND-WERKE)

The number of companies, both in the EU as well as globally, who operate in all three of these sectors is extremely limited. 12%

EU Supply Sources In order to supply the copper required to produce the annual demand for semi-fabricated products of around 3.5 million tonnes, the EU copper industry obtains its raw materials from four sources:

20%

Value chain and end-of-life scrap from within the EU (43%) Imports of concentrates (25%) Mining operations within the EU (20%) Metal imports (12%)

43% 25%


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Maintaining Industry’s Licence to Operate To support the copper industry’s license to operate, as well as to secure fair market access for its products, ECI researches and advocates on a range of issues. Throughout 2015, advocacy was focused on the EU Emissions Trading Scheme, the EU classification of lead, harmonised EU classifications for copperbased products used in biocides and EU Product Environmental Footprint pilot projects. At an international level, ECI finalised a standardised, global copper effects hazard database with the OECD and contributed substantial technical analysis into the International Maritime Organization’s efforts to strengthen its rules covering the shipment of bulk cargoes, such as metal concentrates.

Calling for a Level-Playing Field under EU ETS ECI recognises the EU Emissions Trading Scheme (EU ETS) as a cost-efficient driver for CO2 reduction. Through significant capital investments, the EU copper producing industry has successfully reduced its own CO2 emissions by cutting its unit energy consumption by 60% versus 1990. Today, the industry’s emissions are around 4.5 million tonnes/year, a modest 0.1% of the EU total. ECI supports the position of Eurometaux, which is to ensure that the ETS protects the competitiveness of the best performers within energy-intensive industries. Specifically, ECI asks that the following be adequately addressed in the Commission's current work to restructure the ETS after 2020: • Put indirect emissions on an equal footing with direct emissions • Secure a more harmonised approach to compensation amongst the Member States • Prevent undue carbon costs for best performers • Base compensation on actual production levels To prevent carbon leakage within the copper sector, ECI also asks that future assessment methodologies include qualitative considerations, such as the price taker element used in EU State Aid Guidelines. While it is challenging to set technically sound and achievable “fallback” benchmarks for the small, heterogeneous

copper sector, it is important that they take into account the processing of increasingly complex, naturally occurring copper ores, the miniaturisation of products to support resource efficiency, and the goals of the circular economy (to recover and recycle more end-of-life scrap), all of which require substantially more energy.

Sound Science Secures Fair Outcomes on Lead Classification Based on a growing body of evidence, in particular linked to risks for children, the EU will introduce human health classifications for lead metal. While the non-ferrous metals industry agreed with the proposal to classify lead as a Category 1 reproductive toxicant, it argued that scientific protocols justify separate classification limits for massives and powders. Based on differences in the bio-accessibility of lead (release of metal ions into body fluids), there will be two separate classifications, a severe one for lead metal and a more severe one for lead powders. For more than 20 years, the copper industry has invested in process technology improvements, as well as in new alloy development, to reduce the lead content in copper alloys. Given that many copper sector substances contain small, naturally occurring or impurity levels of lead, this outcome avoids the classification of several tens of thousands of tonnes of lead-free alloys each year. Leaded alloys continue to be used, under clearly defined exemptions (e.g. in End of Life Vehicle and Consumer Product Directives) and in applications where high-precision and functional reliability are required, e.g. in automotive wire-harness connectors, locks and gear systems. In order to reinforce how the concept of bioaccessibility should be used in the classifications of metals and their alloys, the European Commission has agreed to support the OECD in developing an international protocol on the use of bioelution.


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Helping the EU Achieve its Resource Efficiency Goals

11


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Work Continues on Harmonised Environmental Classifications Under the EU Classification, Labelling and Packaging Regulation, harmonised classifications are required for copper-based materials used in biocide and pesticide applications (e.g. antifouling paints, wood preservatives and agricultural pesticides). Throughout 2015, ECI provided scientific responses to the French Competent Authority and the European Commission on the highly-precautionary environmental classification opinions, for these products, provided by the EU’s Committee for Risk Assessment (RAC) in 4Q 2014. Based on these inputs, the Commission agreed with the Member States to proceed now with full classifications for the acute endpoints, but to postpone those for the chronic endpoints until a further review by RAC. In order to avoid that these niche market biocide classifications do not spill over into the mainstream copper metal applications, which are self-classified under REACH (no classification is required), more work is necessary to clearly identify the identities of the active substances in metal biocide dossiers.

Product Environmental Footprint Pilots Proceed to Testing Phase One of the European Commission’s goals is to provide downstream users and consumers with better comparative information on the sustainability of products. Supported by its members, ECI is taking part in two PEF pilots – one on tubes, the other on metal sheets. These 3-year pilots (2015 was year 2) bring together industry, academia and other stakeholders. The pilots are tasked with developing rules, based primarily around life-cycle considerations, testing them on actual products, and then evaluating different end-user communication routes. ECI has been publishing environmental life-cycle inventory data for the main semi-fabricated copper products (tube, sheet and wire) since 2004. The methodologies to identify, appropriately and fairly, the life-cycle parameters for metals on ecotoxicity, human toxicity and resource depletion are not yet well-established in the scientific or regulatory community. ECI played an important role in ensuring that these uncertainties were identified in the agreedupon Product Category Rules. Later in the year, individual members started to apply these PCRs to their own products. Various communications routes will be evaluated in 2016.

Recognising the methodology limitations noted above, the Copper Alliance co-sponsored (with Euromines) a workshop on “Mineral Resources in LCIA: Mapping the path forward” to debate concerns on the use of Abiotic Depletion Potential (ADP) as an indicator for the depletion of natural resources. During the workshop, various experts exposed common mistakes and flawed assumptions in the method, and confirmed that the indicator can lead to unfair product comparisons.

OECD Publishes Copper Effects Database In 2014, ECI submitted a copper hazard dossier to the Organization for Economic Co-operation and Development. Following review and editing, the Screening Initial Assessment Profile (SIAP) has now been published in the OECD’s online Existing Chemicals Database. The importance of this outcome is that regulatory authorities around the world are able to make use of a solid and consistent body of evidence on which to base their own national chemicals management policies.

Supporting Industry with IMO Compliance The International Maritime Organization (IMO) is introducing new rules covering the shipment of bulk cargoes, such as metal concentrates. Throughout 2012 - 2014, ECI worked with industry to develop a methodology, consistent with other classification mechanisms such as the UN Global Harmonized System, for use by individual companies in securing compliance under MARPOL Annex V. This requires shippers to report whether, or not, their cargoes require classification as Harmful to the Marine Environment (HME). In 2015, ECI extended this service to cover the IMO’s Materials Hazardous in Bulk rules. A generic guidance document was prepared and company-specific health hazard assessments were carried out using the multimetal MECLAS tool. Bilateral technical discussions were held with several IMO member countries, with several suggestions on methodologies taken into account. The main outstanding issue is the application of the UN corrosivity test, developed for liquids, to solid materials. Work to revise this methodology is continuing.


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

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Copper’s Role in the Circular Economy Sustainability and climate change present increasing challenges for policy makers, businesses and society. Regulators are adopting policies intended to break the link between economic growth and the use of natural resources. Industries are innovating to deliver new products and systems that use less building block materials, but still satisfy customer expectations. Society, both businesses and citizens, therefore needs to be much more aware of the importance of returning end-of-life products for sorting, pre-processing and final material recycling. *ICSG Figures, 2014


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Copper’s Role in Combating Climate Change

Broadening the Energy Policy Debate The EU is committed to leading the world on sustainable, low carbon energy. Its pioneering approach to energy efficiency and renewable energy has resulted in the energy acquis now containing over one hundred policies and regulations. The superior electrical and thermal conductivities of copper link it strongly to these efforts and, as an association representing a horizontal building block material, versus a specific end-use sector, ECI was able to contribute to a broad number of policy debates throughout the year. In March 2015, ECI published a comprehensive discussion paper designed to strengthen the Energy Union. It contained a ten-point action plan to secure bigger roles for energy efficiency and demand side options, to increase the flexibility in both the supply and demand of electricity, to promote more innovation and life-cycle thinking, to introduce a more systematic approach in policy planning, and to create policies that would assist developing and transition economies. All of these themes have been developed throughout the course of the year and remain at the forefront of the Energy Union debate. Given the high ambitions for COP21, ECI recognised the need for the EU to accelerate the uptake of energy efficiency and renewable heating and cooling options, not only to secure the significant emission reductions available, but also to improve security of supply, particularly for Member States in Eastern Europe. In July, ECI started its work on the emerging heating & cooling strategy by organising an exploratory stakeholder workshop. The subsequent process led to eight recommendations for heating & cooling which are largely reflected in the Commission’s February 2016 communication and which will be consolidated through the upcoming political process.

Building Automation Can Improve the EU’s Security of Supply Given that 40% of the EU’s energy demand is consumed in buildings, ECI worked with industry associations and NGOs to introduce building automation and control systems into the debate. ECI’s white paper shows that building automation systems can deliver benefit-to-cost ratios of nine to one and could potentially improve the EU’s security of supply by 3-5 percentage points. Building automation is also a core enabling technology if demand side management is to play a more prominent role in any new market design that seeks to smooth out the peaks and troughs in energy supply and consumption. Traditionally, consumers have been passive users. However, continuing this approach in an electricity system that is increasingly sourced by renewables will lead to very high costs for energy storage and/or standby power generation, as well as increase the risks of non-availability. The better way is to adopt policies where demand and supply carry more equal weights. The significance of copper-based technologies can be seen from their intensities of use below:

8kg

300kg

10%

43%

per heatpump

per induction furnace

smart buildings (10% more copper)

smart homes  (43% more copper)


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

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Unlocking the Flexibility Potential in Energy Intensive Industries Process technology innovations that could lead to more flexible demand needs from industry are very important. Horizon 2020 is a welcome source of shared development funds. Early in 2015, ECI catalysed the IndustRe project. The strong project group, involving industry, academia and energy institutes, is exploring ways to unlock the flexibility potential within energy intensive industries to facilitate the increased use of intermittent renewable energy sources. ECI is therefore well-placed to formulate policy recommendations for the upcoming legislative proposal on market design.

Strengthening Electricity Grids One of the key requirements for the energy transition to be effective is the availability of a comprehensive, reliable and energy efficient grid. For ten years, ECI has been a key partner in Europacable’s outreach campaign on the partial undergrounding of transmission and distribution supply cables. While there is an initial cost premium for underground lines, broad benefits accrue through less time consuming planning approval processes, reduced land access, avoidance of unsightly cables in the urban environment and areas of natural beauty, lower maintenance costs, etc. In December, the German Bundestag adopted a legislative proposal which will strongly increase the degree of underground cabling in Germany´s grid network. To respond to local community concerns, any new high voltage, direct current (HVDC) project will be a priority for undergrounding. New, high voltage, alternating current (HVAC) projects will be eligible for partial undergrounding of up to 20kms.

Proposing New Product Categories for the Ecodesign Work Plan ECI continues to be a proactive voice in EU product policies covering energy consuming and energy related products. ECI proposed new product categories, with very large savings potentials, for the Ecodesign work plan, such as power cables and building automation systems. ECI’s newest publication “Six reasons why building automation should be included in the 2015-2017 work plan” provides strong arguments for its inclusion based on the significant energy, CO2 and cost saving potentials from these technologies. Compliance with energy efficiency based product regulations is important both for endusers and consumers, as well to provide a level playing field for suppliers, whether they are EU producers or importers. The European Commission has expressed, in several fora, the need to strengthen the capacity of Member States to conduct Ecodesign related compliance checks. ECI initiated a proposal and then helped to secure support for a Horizon 2020 funded project on “Industrial and tertiary product Testing and Application of Standards”. The INTAS project, of 1.8M€ over three years, is led by Renewable Energies (WIP) in Munich. Other key partners are the European Environmental Citizens’ Organisation for Standardisation (ECOS) and eleven Member State authorities. The project will support national Market Surveillance Authorities in compliance checking for large products (specifically transformers and large fans), both of which are relatively copper intensive.

Systems Can Be Just as Important as Products While individual standards regulating the energy efficiency of products are clearly important, the efficiency of systems must also be considered by designers, installers and operators. To support such efforts, ECI, with the support of Copper Alliance colleagues in Germany and Poland, helped to develop a standard covering energy


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

efficiency in low-voltage electrical installations. Elements of this standard also reflect the decade-long focus that ECI has had, through its partnership with the International Federation for the Safety of Electricity Users (FISUEL) and the European Association of Electrical Contractors (AIE), on improving the safety of residential electrical installations. As an IEC standard, this should be able to deliver benefits more broadly around the world. In conclusion, all of the energy efficiency and renewable energy solutions proposed by ECI have to be integrated into an electricity system which needs to operate much more sustainably. Through its work with the International Energy Agency on Demand Side Management, ECI is therefore working on the integration of various solutions for renewable power and solar heat generation, energy storage and e-mobility into the EU’s mainstream electricity and energy systems.

Copper Industry Calls for a More Holistic Approach to Reducing EU Carbon Emissions In 2011, the European Commission invited industry sectors to submit roadmaps showing the contributions that they could make towards the EU’s goal of creating a competitive, low-carbon economy that, by 2050, will reduce emissions by 80% versus 1990.

TOTAL EU EMISSIONS IN MILLIONS OF TONNES C02

5,500 5,000 4,500 4,000 3,500 3,000

4.5 Copper Industry Emissions

500 1990

2000

2010

2020

Source: Copper’s contribution to a low-carbon future: a plan to decarbonise Europe by 25 percent

2030

2040

2050

On September 15th, ECI organised, at the Bibliothèque Solvay in Brussels, a half-day conference to debate the question “Can copper become Europe’s climate currency?” The conference was also used to launch ECI’s road map on “Copper’s contribution to a lowcarbon future: a plan to decarbonise Europe by 25 percent”.

ECI’s plan called for a much more integrated and collaborative approach towards reducing emissions. While continuous improvement is expected from all industries, in particular those identified as energy intensive, policy makers must also recognise the emission reductions achievable through the increased use of these industries’ products. Since 1995, the EU copper industry has reduced its own unit energy consumption by 60%. This has been achieved by process technology breakthroughs, as well as through the broader recovery and use of waste heat. In 2014, ECI estimates that the EU copper sector accounted for a modest 0.1% of the EU’s total CO2 emissions. While the sector is committed to continuing its efforts, further small improvements will come at a much higher cost. Given Europe’s higher energy, environmental abatement and social costs, this will only add to the competitive challenges that European producers face when competing in the global market. ECI’s Chief Executive, John Schonenberger, argues that “we can achieve much better results by both strengthening and broadening full value chain engagement”.


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

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Based on the results of extensive third party and internal studies, ECI’s roadmap identified strategies for seven copper-based technologies that could deliver substantial carbon reductions in the downstream industrial, residential and service sectors. Fully implemented, the plan could reduce EU CO2 emissions by 25%, or 1,100 million tonnes per year, by 2050 versus 2011 levels. The conference brought together diverse stakeholders (policy makers, industrial value chains and NGOs) to debate the plan and discuss the CO2 emissions reduction potential of these technologies. Participants stated that Europe misses many opportunities by not working across value chains. They also underlined the need for much more collaboration, amongst the private and public sectors, to reconcile climate ambition with the need for industrial competitiveness and job creation. Annual emission savings by 2050 (C02 million tonnes): 100

Motor efficiency

4

Transformer efficiency

14

Cable efficiency Solar thermal technologies

300

Electrification of thermal processes

290

Building energy management

380 40

Wind powered industrial processes

2000

2010

2020

2030

2040

7 copper-based technologies that could reduce Europe’s CO2 emissions by more than 1,100 million tonnes per year

2050

Hans Ten Berge Secretary General, Eurelectric “In my years as head of EURELECTRIC, it is certainly not a common practice to show up with such a positive commitment to addressing one of our planet’s greatest challenges. The European Copper Institute’s report on reducing carbon emission by 25% in 2050 by involving the downstream value chain is a welcomed step in the right direction needed to progress in this important issue.”

Copper Industry Spoke at COP21 Energy Day Under the umbrella of the United Nations initiative Sustainable Energy for All (SE4All), ECI participated in the “We Commit” campaign, a private sector commitment framework for energy efficiency. The campaign encouraged companies to actively engage in global efforts to double the rate of energy efficiency improvements and help the global transition to a low-carbon, climate-resilient economy. Commitments were presented during the 7th COP21 Energy Day on December 7th. In addition, the President of the International Copper Association, Anthony Lea, spoke on the need to introduce minimum efficiency performance standards, plus testing capabilities, for appliances (white goods) in the developing economies.


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

The Benefits of Using Copper Partnering with EU’s Downstream Industries The EU copper industry employs 45,000 people and had an estimated turnover, which is highly dependent on global metal prices, of about E45 billion in 2014. However, what is far more important is the breadth of industrial and service sector employment that is based on the added value achieved through the use of copper products (e.g. energy utilities, electricians, automotive companies, electronic equipment manufacturers, plumbers and roofers). These “downstream” sectors represent a very substantial part of EU’s industrial base.

Used for its superior electrical and thermal conductivities, its ability to be alloyed with other metals in order to enhance performance, plus its durability and strong recycling credentials, copper is an important enabler for innovation in renewable energies, energy efficiency, sustainable buildings, transport systems and healthcare. This chapter provides an overview of ECI’s main activities to sustain and grow demand by promoting the benefits of using copper and copper alloys across the EU.


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Use of refined copper, by sector, within EU 28 (Source: IWCC / ICA, 2015):

25%

Building Construction 36%

36%

Other Equipment25% Industrial 15% Transport 14% Infrastructure 10%

15%

14%

10%

Copper in Electrical Applications Academy on Industrial Electro-Heating Technologies Electro-heating covers those branches of material processing where some benefit could be obtained from an electromagnetic influence. Current examples include resistance, infrared, induction, electric arc and electronbeam heating, all of which offer a range of efficiency, productivity, environmental and economic benefits. ECI has teamed up with the International Union for Electricity Applications (UIE) to launch an Academy to raise awareness of the benefits of these technologies to industrial users. The Academy delivers live, free-of charge monthly webinars, which are then archived and available 24/7 to interested users.

Leonardo ENERGY Platform Launched Helpdesk for Professionals Since 2010, Leonardo ENERGY, which is managed by ECI, has offered an academy of online courses to support energy professionals. While the campus now has over 140 training courses, many practical questions remain. We have therefore complemented this more structured training with a helpdesk to support users in the first steps of their sustainable energy project. Frequently Asked Questions cover conductors & cables, motor systems, energy performance contracting, energy management, heat pumps and cogeneration systems. www.leonardo-energy.org

Safe and Efficient Access to Electricity in Africa The UN’s Millennium Goals cannot be reached without ensuring universal access to electricity that is both safe and efficient. ECI’s support for these goals is focused on peri-urban electricity access, with pilot projects well advanced in Brazil, the Ivory Coast and Senegal. ECI has designed the very first electrification project based on micro-financing by the local inhabitants. This reasonable size pilot enables feasibility testing without being dependent on largescale funding programs. The World Bank has expressed interest in this important societal goal.


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Copper in Building Construction Inspiring Architects and Home Owners ECI’s Copper in the Built Environment campaign provides technical and regulatory support to professionals, as well as promoting the benefits of copper-based products and systems in buildings to end users. The campaign’s national language websites cover architectural products, plumbing and heating, antimicrobial touch surfaces and residential electrical uses. In 2015, media outreach of the European Copper in Architecture awards showcased spectacular copper images to inspire both professional and public audiences. The winning projects showed a wide diversity of uses - as weather shield, solar shading, security barrier, natural landscape partner and design option. The grand jury of international judges awarded first prize to Trollbeads House in Copenhagen (BBP Arkitekter). The public choice, voted online, went to the VDV House in Belgium (Graux and Baeyens Architecten). All awards can be seen at – www.copperconcept.org/awards.

Industry and Regulators Discuss Materials and Products in Contact with Drinking Water Policy makers from the European Commission, Member State national health authorities and water industry representatives discussed the status of the European regulatory framework, covering materials and products in contact with drinking water, at a conference in Brussels in May. Organised by the European Federation of National Associations of Water Services, the Copper Alliance in Germany, Plastics Europe and Aqua Europa, the event gathered about 160 participants from 22 countries. Stakeholders signalled the need for a breakthrough, on the implementation of Article 10 of the Drinking Water Directive (1998), in order to find a solution to the current diverse approaches. Work carried out by the copper industry over the past 17 years supports the use of the so-called 4 Member States system. Participants at the conference agreed that this constructive effort, based on a positive material list approach, would guarantee the long-term safety and health of EU citizens. A follow up event is planned for May 2016.

Business Case for Antimicrobial Copper Continues to Build 2015 saw further growth in the evidence base, level of awareness, Cu+ supply chain and adoption of antimicrobial copper as a way to help tackle the spread of pathogens on touch surfaces in hygiene sensitive environments, such as hospitals, schools, offices and public buildings. New scientific evidence became available, with peer-reviewed and published papers confirming copper’s role in protecting against human norovirus and respiratory viruses. Information was disseminated widely via exhibitions, conferences and media outreach.

Supply Chain Continues to Grow The European supply chain now stands at over 100 companies, offering a wide range of alloys, products and services. Collaborative marketing is making it easier for customers to purchase multiple components from a single source. Supply chain partners continue to commit to our outreach by co-funding participation at events. New products include a thermometer, launched by a Greek Cu+ partner at an Athens event attended by the Minister for Health, lift buttons, sinks and bed rails.


EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

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Installations Expanding Beyond Healthcare Institutions Partners continue to achieve commercial installations, in healthcare and beyond. Highlights include: • Park Clinic Manhagen, Germany, upgraded to AMC door furniture throughout the clinic’s intermediate care area; • MCZ S.A. Hospital, Poland, where AMC bed and stretcher rails, IV poles, shelves and corridor grab rails were installed during the refurbishment of various intensive care and surgical units; • Sir Robert Ogden Cancer Centre, a new-build in the UK, where AMC door sets were installed throughout. This gained the manufacturer second place in the Guild of Architectural Ironmongers Health Award; • Foyer Rémois, in Champagne Ardenne, France, was the first large-scale residential installation, with 30 apartments and the sales office equipped with AMC door handles.

Accelerating Adoption of Cu+ Through Guidance and Standards National members of the Copper Alliance are active in joint, multi-disciplinary initiatives to advance the specification and deployment of copper for indoor hygiene. These include the German government-backed Hybau+ Hygienic Hospital Construction project, led by the University of Braunschweig, and the Finnish ERDF-funded Hygiene into Business project, led by Satakunta University of Applied Science. In Poland, we are supporting the national Quality Monitoring Centre, a governmental agency working under the auspices of the World Health Organisation (WHO), with an evaluation of Cu+. In Spain, we introduced Cu+ to the Chairman of the Health Committee of the Spanish Parliament. And, in France, we leveraged our partnership with the national patient association (Le Lien) to secure the hosting of AMC presentations on the WHO website. All of these are testament to the growing evidence base and its dissemination to the highest levels within decision-making bodies.

Copper in Heat-Exchange Systems Reinforcing Copper’s Innovative Role in Evolving HVAC Technologies The heating, ventilation and air-conditioning (HVAC) sector is responding to the challenges of delivering products that are more sustainable. MicroGroove TM technology, developed by the Copper Alliance with its members, uses smaller diameter copper tubes to improve the overall performance of heat exchangers. Key benefits include smaller size units, lower refrigerant charges, the ability to withstand the higher pressures associated with more environmentally-friendly refrigerants, and lower electricity consumption. In 2015, MicroGroove technology was accepted for large, commercial sized heat exchangers and gained recognition through a series of placements in mainstream HVAC journals, seminars, webinars, key websites and features in the MicroGroove newsletter. Attendance at a variety of international exhibitions, such as AHR Expo in Chicago, ACREX India, NH3, Ohrid, Macedonia, ATMOsphere America, Atlanta and IIR Refrigeration, Yokohama, helped to support the key messages for this innovative, world class technology. Further value chain endorsement was provided when MicroGroove teamed up with Burr Oak, a world leader in HVAC process machinery, for a webinar on “The Manufacture of High Efficiency coils with MicroGroove Copper Tubes”. The trends towards propane, CO2 and other natural refrigerants were confirmed. Many companies, such as True Manufacturing, Royal Vendors, and Whole Food, LU-VE Group, all of whom are well respected around the world for their technical leadership in heat exchanger design, are now offering products made with MicroGroove tubes.


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Supporting Innovation along the Industrial Value Chain Technical Service Pilot is Building Success The Copper Alliance in Germany (Deutsches KupferInstitut - DKI) is recognised as one of the leading sources of commercially neutral, technical information on copper and copper alloys. In addition to its free consultancy, more in-depth knowledge on material science, processing and applications can be of value to individual users within the many downstream value chains. Companies are purchasing engineering services, material analysis and attendance in public, or in-house, technical seminars. In addition to Germany, customers came from Austria, France, Italy, Scandinavia, Switzerland and the UK.

Supporting Growth in Copper Alloy Markets Copper alloys are included in new draft guidance on corrosion protection for the offshore renewables sector, under review by NACE TG476 in 2016. This guidance will position copper alloys as viable alternatives to coatings for splash zone protection in the marine environment. Along with co-exhibitors from industry, the Copper Alliance in the UK also hosted a successful stand at the Seawork International exhibition, attended by over 7,000 designers, builders, owners and operators. New materials were promoted, including technical publications and a YouTube series of welding videos. We also issued a new, illustrated publication, Guide to Nickel Aluminium Bronze for Engineers, which provides an overview of properties, specifications and applications for operators, designers and manufacturers. These alloys are of high importance for the aviation, shipping, oil and gas and exterior architecture sectors. The Copper Alliance provided technical assistance to two landmark projects by the 2012 London Olympics cauldron designer, Heatherwick Studio. The first is the high-profile Pier 55 in New York, which will be clad in phosphor bronze. The second is the Thames Garden Bridge, an iconic new landmark that will span London’s famous river. We validated the material choices with technical information and provided the designers with a vital link to industry. Copper-nickel was ultimately chosen for the bridge’s cladding due to its aesthetics, corrosion resistance, durability and 120-year maintenance-free life.


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

Through our offices in Belgium, Finland, France, Germany, Greece, Hungary, Italy, Poland, Spain and the United Kingdom, some of which have over eighty years of experience in advocating the many uses of copper, we employ forty professionals from many different disciplines. The value of our services to our members, the market and society is built upon the skills, expertise and cultural diversity of these people.

UNITED KINGDOM

POLAND

BELGIUM/EU GERMANY

FRANCE

HUNGARY

ITALY SPAIN GREECE

EUROPEAN MANAGEMENT TEAM John Schonenberger Chief Executive john.schonenberger@copperalliance.eu

Dr. Katia Lacasse Manager, REACH and Regulatory Affairs katia.lacasse@copperalliance.eu

Hans De Keulenaer Program Director, Sustainable Energy

hans.dekeulenaer@copperalliance.eu

Irina Dumitrescu Program Manager, Communications and Public Affairs

Nigel Cotton Program Director, Building Construction & Heat Exchange Systems

Angela Vessey Program Manager, Antimicrobial Copper

nigel.cotton@copperalliance.eu

angela.vessey@copperalliance.org.uk

Dr. Katrien Delbeke Program Director, Health, Environment and Sustainable Development

Dr. Anton Klassert Program Manager, Technical & Market Support

katrien.delbeke@copperalliance.eu

irina.dumitrescu@copperalliance.eu

anton.klassert@copperalliance.de

ECI AND THE COPPER ALLIANCE ACROSS EUROPE

FINLAND


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EUROPEAN COPPER INSTITUTE — 2015 ANNUAL REPORT

European Copper Institute Avenue de Tervueren 168, b-10 1150 Brussels B-1150 Belgium Tel: + 32 (0) 2 777 70 70 E-mail: eci@copperalliance.eu EU Transparency Register: 04134171823-87 @Go_Copper

www.copperalliance.eu

2016©European Copper Institute

SCS-COC-005219-JA

2015 Annual Report ECI  
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