Europe’s Biggest Business Lobby Calls for Carbon Market Overhaul

Article content(Bloomberg) — Europe’s largest business lobby called for reforms to the region’s multi-billion euro carbon market to better support industry, piling on more pressure to amend the bloc’s main emissions-cutting tool.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe European Union’s Emissions Trading System, which puts a price on each metric ton of CO2 released into the atmosphere by industry, has come under fire in recent weeks for adding to the financial burden of companies already battling high energy costs and stiff global competition.

The European Commission, the bloc’s executive branch, is due to review the market later this year.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentBusinessEurope, a powerful trade group that represents 42 national business federations, said that while it remained in favor of keeping the ETS, the pace of planned emissions cuts needed to be reconsidered. An injection of liquidity could come from permits currently stashed in a market reserve, according to a report seen by Bloomberg. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe European Commission should also reconsider phasing out the free emissions allowances currently used to support heavy industry and power producers.Article content“You have a situation where carbon costs are up to 30% of energy costs — it’s not negligible,” Alexandre Affre, BusinessEurope’s deputy director general, said in an interview. “The risk of deindustrialization, if the problem is not solved, is high.”Article contentThe report adds to the growing clamor for the EU to dilute the signature tool designed to put the bloc on the path to climate neutrality by the middle of the century. It comes after an industry summit in Antwerp this month, where several CEOs and German Chancellor Friedrich Merz called for the market to be reformed to help European industry stay competitive.Article contentArticle contentAny weakening of the ETS not only risks undermining the bloc’s climate goals, but also reduces a key source of revenue that can be used to help decarbonize heavy-emitting sectors of the economy, like steel and cement. Since 2013, ETS auctions have raised about €245 billion ($289 billion), a portion of which goes into a €40 billion Innovation Fund that supports new clean technologies.Article contentBusinessEurope called for its remit to be broadened, and for funds raised by the ETS to go toward decarbonization.Article contentThe price to emit one ton of CO2 has fallen about 18% this year. On Monday, benchmark carbon allowances closed below €72 a ton.Article contentTrending Posthaste: Forget tariffs, here's how Trump is really making money off Canada News IBM shares plunge as Anthropic touts COBOL modernization efforts Innovation Subscriber only. Garry Marr: There's a great divide in Canada's office real estate market and it's creating big winners and big losers Subscriber only Commercial Real Estate Loblaw plans $2.4-billion investment in 2026, including 70 new stores Retail & Marketing Mexico Visitors Shaken as Cartel Death Fueled Travel Chaos PMN Business Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Forget tariffs, here's how Trump is really making money off Canada News IBM shares plunge as Anthropic touts COBOL modernization efforts Innovation Subscriber only. Garry Marr: There's a great divide in Canada's office real estate market and it's creating big winners and big losers Subscriber only Commercial Real Estate Loblaw plans $2.4-billion investment in 2026, including 70 new stores Retail & Marketing Mexico Visitors Shaken as Cartel Death Fueled Travel Chaos PMN Business