Germany’s largest industrial union is calling for a reassessment of the nation’s climate neutrality goals and relief from current carbon pricing policies, citing an increasingly critical situation for domestic industry. Michael Vassiliadis, head of the IGBCE union, told Politico that the pursuit of climate neutrality by 2045 is jeopardizing the survival of many companies.
Vassiliadis suggested aligning Germany’s 2045 target with the European Union’s 2050 goal as a potential adjustment, but emphasized that even this shift may not be sufficient to address the immediate crisis facing businesses. He stressed the urgent need for immediate support measures.
The union leader criticized the current approach to carbon pricing, asserting it is proving detrimental to German businesses. He argued that the policy is unsustainable in a global context, as comparable regions like Asia and the United States are not following suit. This disparity, he explained, prevents companies from effectively investing in either cost-saving measures or transitioning to greener production methods. Furthermore, Vassiliadis highlighted a lack of readily available technologies, infrastructure and energy sources needed to achieve carbon-neutral production at reasonable costs.
The IGBCE reports a significant decline in production across key industrial sectors, including chemicals, plastics, rubber, glass and paper, painting a picture of increasing hardship for German manufacturers. The situation within these industries is described as even more dire than the overall economic climate.
