The German Federation of Industries (BDI) is strongly opposing calls for the suspension of CO2 pricing ahead of the upcoming EU summit. Tanja Gönner, Chief Executive of the BDI, told the “Neue Osnabrücker Zeitung” that: “To say it clearly once again: German industry stands by the climate goals and the European Emissions Trading System; that is a clear commitment.”
Italy and the Czech Republic have proposed a temporary removal of CO2 pricing ahead of the European Council, which begins on Thursday. A joint letter from prime ministers Giorgia Meloni and Andrej Babis stated that a temporary halt to the EU Emissions Trading System would immediately relieve European industry of CO2 costs.
Gönner countered these claims, asserting that calls to eliminate the CO2 price are exclusively being made by those unwilling to undergo transformation. She characterized the Emissions Trading System as the most crucial market instrument in the fight against global warming, noting that it has already prompted many companies to restructure their production toward carbon neutrality. She added that the overwhelming majority of businesses are at the forefront of this shift and view the reduction of greenhouse gas emissions as essential. Only a smaller third group, she argued, is currently unable or unwilling to transition to climate-neutral production and would therefore benefit from abolishing the CO2 price.
In addition to addressing the EU budget for the coming years, the Emissions Trading System reform is on the agenda for the EU summit. According to the BDI official, two key outcomes must be achieved through this reform: the general population must be able to manage the transformation, while companies that have already achieved significant progress must not be disadvantaged. Balancing competitiveness with CO2 reduction, she stated, requires the CO2 price to play a fundamental role, though she also emphasized that supplementary instruments are necessary.
