Industrial firms warn EU carbon overhaul could benefit polluters

European industrial companies are divided over the planned reform of the EU Emissions Trading System. Early movers including SSAB, Heidelberg Materials and Rockwool argue that a predictable and sufficiently strong carbon price is essential to justify investments in hydrogen-based steelmaking, electrification and carbon capture. They warn that additional free allowances could reduce the cost disadvantage faced by high-emitting competitors and weaken returns on low-carbon investments. BASF, ArcelorMittal and thyssenkrupp, however, say escalating ETS costs are becoming unaffordable because deeper decarbonisation technologies remain expensive and European producers face high energy costs and global competition. The debate highlights a central dilemma for EU policymakers: whether industrial competitiveness should be addressed by easing carbon-cost pressures or by maintaining a strong and predictable carbon-price signal while providing separate support for energy, infrastructure and low-carbon investment.
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