Conference: Is European Union Environmental Policy Efficient at Promoting a Post-carbon Industry? The Case of Energy in the European Ceramic Tile Sector Gabaldón-Estevan, D., Mezquita, A., Ferrer, S. and Monfort, E. 11th International Conference on Innovation and Management - ICIM 2014, Vaasa (Finland) 18-20 November 2014.

1. 11th International Conference on Innovation and Management
ICIM 2014
Is European Union Environmental
Policy Efficient at Promoting a Post-carbon
Industry?
The Case of Energy in the European Ceramic Tile
Sector
Daniel Gabaldón-Estevan | Vaasa 18/11/2014
Department of Sociology and Social Anthropology, Faculty of Social
Sciences,
University of Valencia- Valencia (ES) - daniel.gabaldon@uv.es

2. Authors: D. Gabaldón-Estevan, A. Mezquita, S. Ferrer, E. Monfort
Finance: Generalitat Valenciana
ESTIBMEIC Project - GV/2014/049
0. Index
1. Introduction
2. Theoretical framework, methods & data
3. Analyzing the evidence
4. Conclusions
5. Discussion

3. Introduction:
1. The rationale
Debate on the unsustainability of the actual production model of
‘developed countries’ within globalisation:
+ demand of resources (BRIC countries)
+ public awareness of the limited capacity of the environment to
assimilate human activity
+ demands for environmental sustainability
= Increasing pressure from environmental regulation (CO2-
emission trading scheme, use of BAT, Kyoto Protocol, etc.)
And this is specially so for high energy consuming
manufacturing industry subsectors in the EU that are exposed
to an international market such as…the ceramic tile industry

4. […] “all important economic, social, political,
organizational, institutional and other factors that
influence the development, diffusion and use of
innovations” (Edquist, 2004, pp. 182)
Sectoral system
of innovation
(Breschi and Malerba, 1997;
Malerba, 2002)
Technological systems
(Carlsson and Stankiewitz, 1995;
Huges, 1984; Callon, 1992)
Theoretical framework:
2. Evolutionary Economics
Evolutionist
perspective
(Nelson and Winter, 1977 and 1982)
National system
of innovation
(Freeman, 1987;
Lundvall, 1988, 1992; Nelson, 1993)
Regional system
of innovation
(Cooke, 1993 and 2001;
Saxenian, 1985; Jaffe et al., 1993)
Functional approach
(Bergek et al., 2008;
Jacobsson and Johnson, 2000;
Edquist, 1997)
Distritual
Innovation system
(Gabaldon-Estevan et al., 2011)
Knowledge Learning Heterogeneity Institutions Interrelations

5. Legal and institutional framework
Technological and
advanced services
provider environment
Productive environment
Scientific environment
Theoretical framework:
2. Legal and Institutional Framework
Adapted from Fernández et al. (1996)

6. Cluster
Theoretical framework:
2. Methods and data
Ceramic Tile Industry
Raw materials
Milling
Spray drying
Glaze
preparation
Pressing Drying Glazing Firing
Floor tile
Wall tile
Environmental policies in the EU
o Directive 2004/8/EC Of The European Parliament And Of The Council of 11 February 2004 on the promotion of
cogeneration based on a useful heat demand in the internal energy market
o Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive
2003/87/EC so as to improve and extend the green house gas emission allowance trading scheme of the
Community
o Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial
emissions (integrated pollution prevention and control)
o COM(2011) 109 final Communication from the Commission to the European Parliament, the Council, the
Economic and Social Committee and the Committee of the Regions of 8 March 2011 – Energy Efficiency Plan 2011
o COM(2011) 112 final. Communication From The Commission To The European Parliament, The Council, The
European Economic And Social Committee And The Committee Of The Regions. A Roadmap for moving to a
competitive low carbon economy in 2050
o Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency
o COMMISSION DECISION of 24 December 2009 determining, pursuant to Directive 2003/87/EC of the European
Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to a significant
risk of carbon leakage
o COM(2014) 21 final. Communication from the commission to the European parliament, the council, the
European economic and social committee and the committee of the regions. Energy prices and costs in Europe.
E = mc2

7. Analyzing the evidence:
3.a The (European) Ceramic Tile Manufacturing Process (I)
Raw materials
Milling
Spray drying
Most common ceramic tile manufacturing process in Europe
(single-firing)
Glaze
preparation
Pressing Drying Glazing Firing
Floor tile
Wall tile
Schematic illustration of the single-fired ceramic tile manufacturing process. Source ITC.

8. Analyzing the evidence:
3.a The (European) Ceramic Tile Manufacturing Process (II)
12000
10000
8000
6000
4000
2000
0
Tile production in EU-27 and in the world 2008-2012
2008 2009 2010 2011 2012
Production (Sq.m Mill.)
18,0
16,0
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
% of EUR-27 on world production
World EUR-27 % of Eur-27 on world production
Source: Giacomini 2010; and Stock, 2013.

9. Analyzing the evidence:
The 3.a (European) Ceramic Tile Manufacturing Process (III)
650
600
550
500
450
400
350
300
250
200
150
100
50
0
Evolution of ceramic tile production in Spain and Italy 1981-2013
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Year
Production (miles of m2) Spain Italy
Sorce: Indagini statistiche sull’industria italiana. Cofindustria Ceramica, 2010

10. Analyzing the evidence:
3.b European Ceramic Tile Energy Uses and Consumptions (I)
Evolution of thermal energy consumption in the tile manufacturing process in Spain
60
50
40
30
20
10
0
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Specific thermal energy consumption (kWh/m2)
Monfort et al., 2014

11. Analyzing the evidence:
3.b European Ceramic Tile Energy Uses and Consumptions (II)
14
12
10
8
6
4
2
0
1985 1990 1995 2000 2005 2010 2012
Specific CO2 emission (kg CO2/m2)
Evolution of the specific CO2 emission in Spain
Monfort et al., 2014

12. Environmental policies in the EU
Analyzing the evidence:
EU Energy 3.c Policy Impact on European Ceramic Tile Sector (I)
o Directive 2004/8/EC Of The European Parliament And Of The Council of 11 February 2004 on the promotion
of cogeneration based on a useful heat demand in the internal energy market
o Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive
2003/87/EC so as to improve and extend the green house gas emission allowance trading scheme of the
Community
o Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial
emissions (integrated pollution prevention and control)
o COM(2011) 109 final Communication from the Commission to the European Parliament, the Council, the
Economic and Social Committee and the Committee of the Regions of 8 March 2011 – Energy Efficiency
Plan 2011
o COM(2011) 112 final. Communication From The Commission To The European Parliament, The Council, The
European Economic And Social Committee And The Committee Of The Regions. A Roadmap for moving to a
competitive low carbon economy in 2050
o Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency
o COMMISSION DECISION of 24 December 2009 determining, pursuant to Directive 2003/87/EC of the
European Parliament and of the Council, a list of sectors and subsectors which are deemed to be exposed to
a significant risk of carbon leakage
o COM(2014) 21 final. Communication from the commission to the European parliament, the council, the
European economic and social committee and the committee of the regions. Energy prices and costs in
Europe.

13. Analyzing the evidence:
EU Energy 3.c Policy Impact on European Ceramic Tile Sector (II)
10
9
8
7
6
5
4
3
2
1
0
Evolution of the EUA prices
01/01/2013 22/03/2013 10/06/2013 29/08/2013 17/11/2013 05/02/2014 26/04/2014 15/07/2014
EUA price (€/t)
http://www.sendeco2.com/

14. Analyzing the evidence:
EU Energy 3.c Policy Impact on European Ceramic Tile Sector (III)
Average energy prices for the European ceramic tile industry
Energy source 2010 2011 2012 % change 2010-2012
Natural gas price (€/MWh) 25.0 26.2 31.7 26.8
Electricity price ((€/MWh)) 80.8 88.8 97.6 20.8
Source: COM (2014) 21 Final

15. Conclusions:
4. The starting point
The European ceramic tile industry has:
•adopted innovative technologies
•implemented energy saving actions to reduce its energy
consumption and COemissions
2
•is using the Best Available Techniques
However, new regulation and environmental policies are requiring
greater innovations and is resulting in a risk of relocation of
ceramic factories outside the EU, in areas with less strict
environmental policies

16. Conclusions:
4. The context
The new Emission Trading Scheme Directive has had an impact on
almost all European ceramic tile manufacturers, although its overall
effect should be to promote research, investment, and other activities
directed to reducing CO2 emissions.
ETS Directive does not provide a mid-term fair solution for the
companies that have continuously updated their industrial facilities
(besides free allowances are reduced every year, and is not sufficient
as even the best energy performers may not receive enough
allowances).
Therefore the industry risk a loss of competitiveness with external EU
manufacturers due to the direct costs of implementing ETS
(allowances to buy) and the indirect costs (management system and
audits).

17. Conclusions:
4. The requirements
In order to meet the demands of reducing CO2 emissions between 83% and
87% by 2050, European companies must begin reducing their CO2 emissions
in the medium term but for this another techno-logical revolution will be
needed.
For instance, to reduce CO2 emissions by more than 50% decarbonization and
cheapening of the electricity production system in Europe will be needed, to
allow the use of electric driers and kilns with minimum CO2 emissions. Fuels
from biomass or biogas will not reduce emissions enough to meet the 2050
target.
EU policies indirectly affect energy prices that in turn affect competitiveness of
energy-intensive industries. Energy costs, which represent around a third of
ceramic tile manufacturing costs, is two to four times higher in the EU than in
competing countries, therefore policies affecting energy costs will be crucial for
the survival of the European industry.

18. Conclusions:
4. The challenge
Finally, as the systems perspective predicts, the implementation of
breakthrough technologies, including the use of renewable sources of energy,
is undoubtedly linked to the institutional and financial support for research
activities. Therefore EU research policies will play a central role in the future of
energy-intensive industries.
However many European and domestic research programs are focused on
advanced materials and new sectors (biomedicine, pharmacy, etc.), with the
results that there is an increasing shortage of funds to support the so-called
traditional sectors.
Only a more comprehensive research financing scheme that includes research
support to the so-called traditional sectors will help ceramic tile and other
European industry sectors to continue to lead the transition to a hypocarbon
economy.

19. Epilog:
5.a Some of our references
Monfort, E.; Mezquita, A.; Vaquer, E.; Gabaldón-Estevan, D. (2014) Path-dependency and path-making in the energy system
in the Spanish ceramic tile cluster. Boletín de la Sociedad Española de Cerámica y Vidrio 53 (3) 111-120 (in Spanish)
Available at: http://boletines.secv.es/upload/2014070792201.201453111.pdf
Gabaldón-Estevan, D.; Criado, E.; Monfort, E. (2014) The Green Factor in European Manufacturing: A case study of the
Spanish ceramic tile industry. Journal of Cleaner Production 70, 242-250 (in English)
Available at: http://www.sciencedirect.com/science/article/pii/S0959652614001620
Gabaldón-Estevan, D.; Hekkert M.P. (2013) How Does the Innovation System in the Spanish Tile Sector Function? Boletín
de la Sociedad Española de Cerámica y Vidrio 52 (3) 151-158 (in English)
Available at: http://ceramicayvidrio.revistas.csic.es/index.php/ceramicayvidrio/article/download/1205/1239
Gabaldón-Estevan, D.; Fernández de Lucio, I. and Molina Morales, FX. (2012) Distritual Innovation Systems. ARBOR-Ciencia
pensamiento y cultura, 188 (753), pp. 63-73 (in Spanish)
Available at: http://arbor.revistas.csic.es/index.php/arbor/article/download/1448/1457
Gabaldón-Estevan, D. (2011) El sistema distritual de innovación cerámico de Castellón. Universitat de València. Servei de
Publicacions. (Bilingual) Available at: http://rodrigo.uv.es/bitstream/handle/10550/23431/gabaldon.pdf?sequence=1
Monfort, E., Mezquita, A., Granel, R., Vaquer, E., Escrig, A., Miralles, A., Zaera, V. (2010) Análisis de consumos energéticos
y emisiones de dióxido de carbono en la fabricación de baldosas cerámicas. Boletín de la Sociedad Española de Cerámica y
Vidrio 49 (4) 303-310 (In Spanish) Available at: http://boletines.secv.es/upload/20100901173134.201049303.pdf
Monfort, E., Garcia-Ten, J., Celades, I., Gomar, S. (2010) Monitoring and possible reduction of HF in stack flue gases from
ceramic tiles fired under different conditions. Journal of Fluorine Chemistry 131, 6-12 (in English)
Available at: http://www.sciencedirect.com/science/article/pii/S0022113909002607
Tortajada Esparza, E.; Gabaldón-Estevan, D. and Fernández de Lucio I. (2008) La evolución tecnológica del distrito
cerámico de Castellón: la contribución de la industria de fritas, colores y esmaltes. Boletín de la Sociedad Española de
Cerámica y Vidrio. 47 (2) pp. 57-80 (in Spanish) Available at:
http://boletines.secv.es/upload/20080512114901.47[2]57-80.pdf

20. Thank you for your attention!!!
Daniel Gabaldón-Estevan | Vaasa 18/11/2014
Department of Sociology and Social Anthropology, Faculty of Social
Sciences,
University of Valencia- Valencia (ES) - daniel.gabaldon@uv.es
http://www.slideshare.net/DanielGabaldnEstevan
https://uv.academia.edu/DanielGabald%C3%B3nEstevan
https://www.researchgate.net/profile/Daniel_Gabaldon-Estevan
https://www.linkedin.com/pub/daniel-gabad%C3%B3n-estevan/23/722/aaa
http://orcid.org/0000-0003-2086-5012
http://www.researcherid.com/rid/B-5195-2011
Epilog:
5.b The end