Energy: Confindustria, BDI and Medef call for a thorough review of the ETS
The letter sent to the President of the European Commission, Ursula von der Leyen. The request: that the rules governing the European CO₂ market be brought more into line with the realities of the industry
Key points
BDI, Confindustria and Medef are calling on the President of the European Commission, Ursula von der Leyen, to carry out a thorough review of the ETS mechanism, so that the rules governing the European CO₂ market are brought more into line with the realities of industry, taking into account available technologies, costs, infrastructure and international competition. The appeal was made in a joint statement published in the Financial Times.
The letter from industrialists in France, Italia and Germany
The letter, signed by the industrial associations of France, Italia and Germany – in which they set out a common position for the first time ahead of the proposal due on 17 July – also refers to a recent study by the University of Milan-Bicocca on the ETS, according to which, between 2013 and 2024, the reduction in emissions would have resulted more from company closures than from the mechanism’s impact on decarbonisation.
The requests set out in the letter
The leading industry organisations from Europe’s top three economies – which together represent nearly 500,000 businesses – are also calling for a review of the Market Stability Reserve, the mechanism that regulates CO₂ allowances on the European market, to prevent shortages caused by the current rules and to limit price volatility; strengthen the CBAM – the EU’s carbon border adjustment mechanism on CO₂ emissions from imported goods – whilst maintaining free allowances and ETS cost compensation until effective alternative measures are in place to prevent the relocation of production outside the EU; allocate all ETS revenues to decarbonisation; incorporate, after 2030, solutions such as high-quality international credits, carbon capture and storage, and permanent carbon removals; exclude maritime transport and aviation from the scope of the mechanism.
Confindustria’s institutional meetings in Strasbourg
The request comes at a time when European industry is having to contend with energy costs that remain high and increasing pressure from global competition. Ahead of the European Commission’s decision on the revision of the ETS, Confindustria held a series of institutional meetings this week in Strasbourg, where the European Parliament’s plenary session is currently taking place.
