Europe's industry warns EU climate policy threatens production and jobs

DW (English)

An alliance of 79 European industrial companies is calling for the continuation of free carbon emission certificates, warning that EU climate policy puts energy-intensive industries and thousands of jobs at risk.

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00:00The EU industrial sector is sounding the alarm.

00:04The bloc's climate policy, they say, is jeopardizing their business model.

00:08At the head of a broad coalition is Austrian steelmaker Fürst Alpine.

00:13Among them are also BASF, Evonik, Lanxess, Dupont, ThyssenKrupp and many other energy-intensive firms.

00:21In their letter, the companies call on the European Commission not to reduce free emissions certificates.

00:26Right now, EU plans would gradually cut the number of emissions they can release without charge,

00:33with free certificates disappearing entirely by 2034.

00:38Industry leaders say this could cost them billions, in some cases more than their operating profits.

00:46The companies say the planned elimination of free certificates would mean a massive loss of competitiveness and jobs.

00:56The firms argue they already spend vast sums on certificates for existing plans,

01:02while also being asked to invest billions in new facilities to meet climate neutrality goals.

01:09Without action, they warn, production in steel, aluminium, ceramics and paper could shift outside the EU, putting jobs at risk.

01:17In a rare show of unity, the German mining, chemical and energy workers' union have backed the employer's call.

01:25The alliance points out that export-oriented companies in the EU face higher costs,

01:31which could push customers to competitors abroad who don't have these additional expenses.

01:36The European Commission says changes may be coming, though it is being ultra-cautious in its response.

01:42The topic simply is important enough to make sure that what we do actually works.

01:49So we're beefing up, significantly beefing up, what in essence is predictability and affordability for our citizens.

01:59Concretely, that means we're going to enhance priceability and predictability by strengthening the mechanism to release allowances.

02:05Countries with energy-intensive industries, like Germany and Austria, are pressing the EU to take these concerns seriously,

02:14hoping to protect jobs and local industries.

02:17They argue that these sectors are under pressure not just from EU climate rules, but also from weak economic growth,

02:24US tariffs under President Trump and a flood of cheap imports from China.

02:35You know, until these petitions are out, and these people don't let the push away,

02:42and these people don't often suffer from My peace.

02:45As though they don't have creeped up be very clever,

02:50these Norman systems keep going back to me now,

02:52I don't think��iei, why should they be able to manipulate space이 dead.

02:57Again, again, they have been able to minimize space for this matter of time of their society.

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