Spain's Ceramic Tile Industry Faces Energy Cost Crisis Despite EU Compensation Measures

Spain's ceramic tile sector is grappling with escalating energy costs and regulatory pressures that threaten its viability, even as the European Union steps in to offer some relief. Juanfran Pérez Llorca, president of the Generalitat Valenciana, praised the EU's recent decision to include the ceramic sector in the CO2 indirect cost compensation system from 2026. However, he warned that this measure alone is "insufficient" to offset the severe energy cost increases plaguing the industry.

During a meeting with Spanish Prime Minister Pedro Sánchez on December 17, Pérez Llorca advocated for the Spanish government to ensure adequate funding for these compensatory aids to maximize the number of electro-intensive companies benefiting from them. He underscored that the primary threat remains the EU's Emission Trading System (ETS), which imposes new rights and costs for carbon emissions, heavily impacting the ceramic cluster.

Pérez Llorca also called for the Spanish government to defend the sector by pushing for a suspension of the new emission rights regime and halting planned cuts to cogeneration remuneration, which could lead to significant financial losses. He stressed the importance of creating a fair and realistic legal and energy framework and protecting the industry from international competitors that operate without similar regulatory constraints.

Although Spain's economy is projected to grow by around 3% in 2025, the highest in the Eurozone, broader economic challenges loom, including legislative paralysis and rising public spending. These factors add to the precarious environment for traditional industries like ceramics. This complex context intensifies the demands for a comprehensive support strategy tailored to energy-intensive sectors struggling with both domestic and EU-level regulatory pressures.

In summary, while EU assistance provides some support, the Spanish ceramic tile industry requires more substantial measures and government advocacy to navigate the twin energy and regulatory challenges and preserve this cornerstone of Spain's manufacturing heritage.