European industry leaders call for suspension of EU emissions trading system

Italian officials and industry leaders are calling for a suspension or radical revision of the European Union's Emissions Trading System (ETS) due to concerns over industrial competitiveness. During the Cersaie trade fair in Bologna, Eni CEO Claudio Descalzi argued that the mechanism should be halted during the current energy and geopolitical crisis, warning that it threatens sectors such as automotive, ceramics, and cement.

Italian Minister of Enterprises and Made in Italy, Adolfo Urso, supported this stance, stating that a suspension is increasingly urgent. Additionally, Defense Minister Guido Crosetto described the ETS as “unjust, absurd, and unsustainable in international competition,” warning of a potential “industrial suicide” for Europe.

While critics argue the carbon pricing is essential to drive investment toward low-emission technologies, the debate highlights a growing divide within the EU. Member states remain split on how to balance decarbonization goals with the economic burden placed on heavy industry. The European Commission has already proposed a revision of the system as of July 17.