The European Commission's proposed reform of the EU Emissions Trading Scheme (EU ETS) could sharply increase costs for energy-intensive industries, according to the sector. In a joint appeal, more than 100 European businesses warned of these risks, which could deprive Europe of investment and threaten production.
This was reported by Reuters, citing a joint letter from the companies.
Industry representatives point to growing concern about the price Europe is paying for the green transition, above all high energy prices and competition on the global market.
The companies that signed the appeal include Covestro, Evonik, Wacker Chemie and Thyssenkrupp.
"Europe's energy-intensive industries face intense competitive pressure, high energy costs and an increasingly difficult investment environment. Yet our common goal is clear: we want to decarbonise, invest and continue producing in Europe," the letter states.
As a reminder, the European Commission presented its proposals for revising the EU ETS in July. The scheme is Europe's key decarbonisation instrument, under which polluters have to pay for their greenhouse gas emissions by buying the corresponding allowances on the carbon market.
The European Parliament is due to vote on the reform as early as December.
However, analysts forecast that prices on the EU emissions market will rise.
"We are ready to make the investments needed for the transition. But Europe must ensure the conditions that make them possible and fair, including globally competitive energy prices, infrastructure and demand for low-carbon products. The Commission's ETS proposal cannot by itself provide such a framework," the industry representatives add.
The companies therefore see no relief in the Commission's proposals, but rather a driver of higher costs and faster closure or relocation of production capacity.
At the same time, the businesses do not support plans to grant free CO2 emission allowances only to enterprises that commit to investing in decarbonisation. The companies are calling for impartial benchmarks.
The plan is to issue 80% of free allowances to companies that intend to invest in emission reduction measures.
After they were published, the European Commission's proposals drew criticism from climate experts. They believe the changes will allow companies to delay the decarbonisation of industry and will put environmental innovation at risk.
For its part, the European Parliament plans to significantly adjust the Commission's plans. In particular, it wants to oblige countries to spend an unprecedented 75% of carbon market revenues on decarbonising industry.
