The dispute over the future of the European Emissions Trading System (ETS) is intensifying. In mid-July, the EU Commission plans to present a draft law that would gradually end the free allocation of CO₂ certificates to industry and reduce the total number of certificates. The system is considered a central instrument of European climate policy: those who emit less produce more cheaply.
A group of energy-intensive companies – including BASF, Thyssenkrupp Steel, ArcelorMittal and Exxon – has sent an open letter to EU Council President António Costa, which FAZ has seen in advance. The signatories call on the Council to “take immediate measures to stop the escalation of ETS-related costs and avert further damage to Europe’s industrial base.” They argue that Europe is effectively acting alone while global competitors bear no comparable CO₂ costs.
The companies complain that politicians have not created the promised conditions for transformation: critical infrastructure for energy, hydrogen and CO₂ storage is inadequate, access to low-carbon raw materials is limited, and demand for green products is low. Without massive public support, a comprehensive transition is not economically viable. They warn of production relocation abroad, plant closures and job losses in the EU.
On the other side are companies that have already invested heavily in green technologies. For them, these investments only pay off if CO₂ costs rise as planned. The rift runs through German industry: while some warn of competitive disadvantages, others insist on reliable climate targets. The EU Commission must now find a compromise that takes both sides into account.
Source: www.faz.net
