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Back You are here: Home Politics Punitive tariff against Chinese P.V. products will shrink E.U. solar industry - report

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Punitive tariff against Chinese P.V. products will shrink E.U. solar industry - report

A recent study found that any form of disciplinary tariffs against imported Chinese solar products will result in the downfall of the photovoltaic industry across the European Union.

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According to independent economic institute Prognos, anti-dumping or countervailing duties imposed at whatever level on Chinese photovoltaic equipment will consequently reduce demand for solar products, translating into significant job losses and less value added to the overall European P.V. value chain.

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Using three scenarios of duties – 20 percent, 35 percent and 60 percent –the report presented the impact these measures could have from 2013 and 2015.

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A 20 percent punitive tariff is tantamount to 115,600 job losses in the E.U. in the first year following implementation and 175,500 job losses until the third year. Additionally, the value added lost would total 4.74 billion euro ($6.27 billion) in the first year and another 18.4 billion euro by the third year.

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Meanwhile, a further 60 percent punitive tariff would cause as much as 193,700 job losses in the first year and 242,000 in the third year. The value added loss would hit 7.86 billion euro throughout the first year and close 27.2 billion euro over three years of implementation.

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“The potential positive impact of duties for the E.U. solar producers is dwarfed by the negative impact on employment in the E.U,” said Thorsten Preugschas, chief executive officer of the German project developer Soventix, a spokesperson of Alliance for Affordable Solar Energy.

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“Due to the imposition of tariffs, production of E.U. solar products increases and some jobs are being created. However, the jobs created by the E.U. solar producers represent at the very most 20 percent of the jobs lost along the P.V. value chain,” he noted.

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In September 2012, the European Commission initiated an anti-dumping sanction against China to investigate whether Chinese manufactured crystalline P.V. wafers, cells and modules are being sold at a significantly lower rate or not. Two months later, it instigated a similar anti-subsidy sanction. The investigations are currently underway. – EcoSeed Staff

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