European business requires realistic deadlines and green transition paths

European business requires realistic deadlines and green transition paths Shutterstock
Katerina Belousova

CBAM and ETS may lead to competition from companies that do not have to face the same climate goals

In a joint statement, 300 CEOs from 400 European industrial companies called for realistic deadlines and ways to accelerate the green transition, in particular through the implementation of decarbonisation projects.

This is stated in a joint statement of energy-intensive companies ahead of the plenary vote on the Carbon Border Adjustment Mechanism (CBAM) and the Emissions Trading Scheme (ETS), reports ANSA

These companies from many sectors, including the metallurgy and energy sectors, provide 2.6 million jobs.

The material noted that CBAM and ETS could lead to competition from companies that do not have to face the same climate goals.

It can also damage the ability of industrial sectors to invest in green technologies, as increasing the cost of carbon, when funds are needed to invest in decarbonisation, reduces resources for green investment.

"The paradox is that reducing quotas on free services, rather than speeding up, will slow down emission reductions, making it harder to develop green technologies," ANSA reported.

The statement said that the risk is that low-cost and high-carbon imports from outside the EU (eg India, Turkey, China, etc.) will increase exponentially. This could lead to the relocation of emissions outside the EU, as well as the closure of companies and the dismissal of workers.

We will remind, The European Parliament will accept the final decision on the carbon market.

As EcoPoliticа reported earlier, the European Parliament is called upon counteract carbon leakage in the paper industry.

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