ANTWERP, Belgium — Ursula von der Leyen, President of the European Commission, has staunchly defended the EU’s vital carbon market, responding to rising concerns that the bloc’s primary climate initiative threatens industrial jobs and factory operations. Her remarks came during a significant gathering in Antwerp where industry leaders voiced their apprehensions and demands for regulatory relief.
Industry leaders push for regulatory changes
As discussions unfolded on Wednesday, CEOs from various sectors appealed to European policymakers for a reconsideration of the current regulatory framework. These requests resonate within the EU’s corridors, particularly under von der Leyen’s governance, which has seen a pronounced drive towards deregulation following industry feedback.
However, when industry figures and political leaders intensified their calls to modify the Emissions Trading System (ETS)—the cornerstone of EU climate policy that manages around half of the bloc’s greenhouse gas emissions—von der Leyen firmly countered. She stated,
“The Emissions Trading System, the ETS, brings clear benefits. Since it was introduced in 2005, emissions dropped by 39 percent, while the economy in sectors covered by ETS has grown by 71 percent. So this shows that decarbonization and competitiveness can go hand in hand.”
Debate on energy prices and industrial competitiveness
Von der Leyen further argued that the key to addressing high energy prices, a primary concern for manufacturers, lies not in dismantling green policies but in reducing fossil fuel dependency.
“Gas prices drive the energy prices up. Renewables and nuclear drive the price down,”
she emphasized, urging investment in sustainable energy systems, particularly as forecasts suggest stable gas prices for the next few years.
Conversely, German Chancellor Friedrich Merz, speaking later at the same event, contended that the ETS requires reevaluation. He remarked,
“This system is implemented to reduce CO2 emissions, and at the same time to enable the companies to come to CO2-free production lines. So if this is not achievable, and if this is not the right instrument, we should be very open to revising it, or at least to postpone it.”
His comments received significant applause from attendees representing various industries.
French President Emmanuel Macron also weighed in, cautioning against the potential elimination of the ETS and reinforcing that ambitious climate goals must not come at the expense of the region’s industrial foundation. He stated,
“Europe cannot define ambitious climate objectives while allowing its industrial base to disappear.”
The ETS, which mandates that heavy industry, power plants, and transport sectors pay approximately €80 per ton of CO2 emitted, aims to encourage investments in cleaner technologies. While some nations are developing similar carbon frameworks, the EU’s pricing remains the most stringent globally, placing additional pressure on local industries.
Prior to the Antwerp assembly, leaders from Austria and the Czech Republic, alongside executives from major corporations, articulated their concerns regarding the ETS’s impact on competitiveness, advocating for measures to lower carbon costs.
Despite the industry’s push for a slowdown or halt in the phaseout of free permits—an action that critics argue would undermine the ETS’s decarbonization goals—the European Commission remains resolute in its commitment to the system. Climate Commissioner Wopke Hoekstra remarked,
“I’m more than happy to have conversations about how we can make [the ETS] better, but I think we do need to continue with it.”
Von der Leyen has also indicated a need for member states to increase their reinvestment of carbon pricing revenues into industrial decarbonization efforts, noting that currently, less than 5 percent of these funds are being utilized for this purpose by national governments. She reiterated,
“On the European level, 100 percent of these revenues were reinvested in industrial innovation.”
Looking ahead, von der Leyen intends to bring these discussions to the forefront at the upcoming EU leaders’ meeting, emphasizing the need for a collective effort to enhance Europe’s competitiveness while addressing climate challenges. Notably, as the debate continues, environmental advocates have expressed concern over the growing criticism directed at the ETS, warning that weakening this framework would be detrimental to climate objectives.