FRANKFURT (dpa-AFX): Approximately 40 industrial corporations are ramping up pressure on EU leadership ahead of the planned restructuring of the European Emissions Trading System (ETS). "We call for decisive intervention to halt the escalation of costs within the ETS," states a letter addressed to EU Council President Antonio Costa and EU Commission President Ursula von der Leyen, which has been obtained by the Deutsche Presse-Agentur.
The signatories, including chemical giants BASF, Evonik, and Covestro, as well as steel majors Thyssenkrupp and ArcelorMittal, warn that maintaining the current system will lead to production shifts and plant closures. "The consequences: job losses, declining investment, and slowing economic growth, are foreseeable." They argue that policymakers must take immediate action during the ETS reform to "avoid further damage to Europe's industrial base."
EU Climate Protection Instrument Under Scrutiny
Emissions trading serves as the EU's primary climate protection tool on the path toward climate neutrality by 2050. Under this system, companies must hold permits for the emission of greenhouse gases such as carbon dioxide (CO2). These permits can be traded, creating a financial incentive for energy-intensive sectors to reduce emissions. This mechanism establishes a price for every ton of CO2 emitted. Over time, the number of available certificates is reduced, a strategy intended to efficiently drive climate protection.
Pressure is mounting from industry and certain political circles to soften the emissions trading rules to ease the burden on the economy. A fundamental revision of the ETS is scheduled for this summer, with the EU Commission expected to present its proposals in July.
"Europe Virtually Acting Alone"
The corporations argue in the letter, first reported by the "Frankfurter Allgemeine Zeitung," that emissions trading no longer reflects global realities. They contend that Europe is "virtually acting alone" by imposing rapidly rising CO2 costs on an industry already struggling with high energy prices and heavy regulation. "This combination is undermining competitiveness at an accelerating pace." The letter insists that currently debated requirements for the free allocation of certificates must be avoided.
The companies further criticize the lack of necessary conditions for industrial transformation. They point to the absence of a functioning infrastructure for hydrogen and CO2, noting that customers remain unwilling to pay a premium for low-carbon products.
However, the business community remains divided, particularly within the steel industry. While Thyssenkrupp and ArcelorMittal advocate for a weakening of the ETS, other firms that have already invested in upgrading their facilities, such as Saarstahl, fear they may end up at a disadvantage.
The IG Metall trade union, which recently mobilized thousands of steelworkers for protests in Berlin and Voelklingen, also warned against rolling back the transition to climate-neutral production. Such a move, the union cautioned, would jeopardize "tens of thousands of jobs."
