Reform of the European Emissions Trading System (EU ETS)

We need an economically convincing reform of the European Emissions Trading System for the 4th trading period (2021–2030). It is already clear that the system will be tightened up, which will lead to greater burdens on companies.

What is at stake?

Reform of EU ETS must give balanced consideration to climate, industrial and employment policy aspects. For cost-efficient climate protection, companies need fair framework conditions and long-term planning certainty. Growth must not be punished. On the contrary, the EU wants to increase the share of industry in GDP back to the level of 20 percent with its “Mission Growth”. For this, companies which are exposed to international competition must be effectively and durably protected against carbon leakage.

Priorities of German Business

The ETS reform must reliably preserve the competitiveness of European industries and once more make Europe more attractive for investments. Separate national burdens on ETS-covered companies are unquestionably counterproductive.

It is necessary to increase the industry cap (emission ceiling) if there is to be any chance at all of achieving the EU Mission Growth.

Benchmarks must be technologically feasible. A flat-rate reduction in the benchmarks should be rejected since the corresponding efficiency improvements are not possible across the board. The carbon price increases that can be expected will also drive electricity prices higher, hence there must continue to be effective electricity price compensation for our industries.

The most CO2-efficient installations must not have to bear any additional and unilateral ETS-related burdens. More effective carbon and job leakage protection is absolutely essential also after 2020 as long as competitors are not exposed to comparable burdens.