European Heavy Industry Groups Urge EU to Ease Carbon Trading Rules

Over 30 large European energy‑intensive firms, including Arcelor‑Mittal, BP, BASF, Thyssen‑Krupp, Evonik, Covestro, Ineos, Trimet, Lhoist and Solvay, sent a joint letter to EU Council President António Costa and Cyprus President Nikos Christodoulides demanding a revision of the EU Emissions Trading System (ETS). They argue that rising CO₂ permit prices, coupled with insufficient electricity, hydrogen, and CO₂‑transport infrastructure, are making European production uncompetitive.

The companies request immediate measures to halt cost increases, warning that continued divergence between EU carbon costs and those in other regions could drive investments abroad or lead to plant closures, shifting industrial value‑creation out of Europe without reducing global emissions. They also note that the EU’s partial removal of free ETS allocations and the introduction of the Carbon Border Adjustment Mechanism (CBAM) have added burdens, and they call for a re‑balancing of climate objectives with industrial competitiveness.