In the Financial Times of 13 July, Cefic President Markus Kamieth reflects on the upcoming review of the EU Emissions Trading System (ETS) and its importance for Europe’s ability to deliver both climate neutrality and industrial competitiveness.
“Europe’s objective cannot be to reach lower emissions through industrial decline.”
Markus Kamieth underlines that Europe must ensure climate policy delivers emissions reductions, industrial transformation and competitiveness. He warns that Europe cannot afford to mistake deindustrialisation for decarbonisation and stresses that climate ambition must be aligned with industrial realities.
“Climate ambition must work in the real economy: Europe must align the pace of ETS tightening with the pace at which the conditions for industrial transformation become available. Otherwise, we risk cutting industry before emissions.”
The next phase of decarbonisation requires affordable low-carbon energy, carbon infrastructure, investment certainty and demand for low-carbon products: conditions that are still largely missing today.
A successful ETS revision must reflect industrial realities and create the conditions for industry to invest, innovate and decarbonise in Europe. Key parameters of the ETS framework – from the cap trajectory and free allocation to benchmark methodologies – must be set right.
The ETS framework must get the fundamentals right, well before 2030. Otherwise, we risk cutting industry before emissions.