It has become increasingly clear in recent times that some industrial companies are struggling to reduce their GHG emissions. To accommodate these businesses, the Commission is proposing a far-reaching overhaul of the EU ETS. It implies a massive shift in the reduction requirements from the ETS sector to the non-ETS sector if the target of climate neutrality by 2050 is to be met.

AK is convinced that innovative industrial production that meets society’s needs is compatible with the EU’s goal of achieving climate neutrality by 2050. To this end, necessary changes to the Commission’s proposal include the following: The allocation of free allowances is to be made subject to further conditions, such as guarantees regarding location and employment or skills development plans. Member States should use the revenues generated from the auctioning of allowances primarily to finance the infrastructure necessary for the transition. The incineration of municipal waste should not be included in the EU ETS. To prevent harmful state-aid competition between Member States, protection against indirect carbon leakage should be harmonised across the EU.