(Adnkronos) –
BDI, Confindustria, and Medef, the industrial associations of Germany, Italy, and France, for the first time together, are asking the President of the European Commission, Ursula von der Leyen, for a deep revision of the ETS mechanism (Emissions Trading System), so that the rules of the European CO2 market are made more aligned with industrial reality, taking into account available technologies, costs, infrastructure, and international competition.
In the letter signed by the industrial associations of France, Italy, and Germany, with which they express a common position for the first time in view of the proposal expected on July 17, a recent study by the University of Milan-Bicocca on the ETS is also recalled, 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 decarbonization.
The main industrial organizations of the top three European economies, which together represent almost 500,000 businesses, also call for a review of the Market Stability Reserve, the reserve that regulates CO2 allowances on the European market, to avoid shortages created by current rules and limit price fluctuations.
They also call for strengthening the CBAM, the European carbon border adjustment mechanism on CO2 emissions of imported products, maintaining free allowances and ETS cost compensations until effective alternative instruments against the relocation of production outside the EU are in place.
The associations also suggest fully allocating ETS revenues to decarbonization; integrating, after 2030, solutions such as high-quality international credits, CO2 capture and storage, and permanent carbon removals; excluding maritime transport and aviation from the scope of the mechanism.
The request comes in a context where European industry must contend with still high energy costs and increasing pressure from global competition. In view of the European executive’s decision on the ETS revision, Confindustria held a series of institutional meetings this week in Strasbourg, where the plenary session of the European Parliament convened.
