EU Emissions Trading System (ETS 1): CO₂ price confirmed – now a reliable framework for industry is needed

At their summit yesterday, the Heads of State and Government of the European Union reaffirmed the EU Emissions Trading System (ETS 1) as a central instrument. However, the European Commission is expected to present proposals for its further development by the summer. Dr. Timm Kehler, CEO of the German Association of Gas and Hydrogen Industries, welcomes the continued support for this cornerstone of EU climate policy:

“The EU summit yesterday confirms the fundamental direction of ETS 1. This is an important signal of reliability in European climate policy. There is no more efficient instrument than a CO₂ price to set the right incentives for investment in climate-friendly technologies in the industrial and energy sectors. These include, in particular, the ramp-up of the hydrogen economy, the increased use of biomethane, and the deployment of carbon capture and storage (CCS).

At the same time, the chemical industry, as a central pillar of industrial value creation in Germany, is under considerable competitive pressure. It is integrated into many downstream industries and is therefore of strategic importance for Europe as an industrial location. Any further development of ETS 1 must therefore take greater account of the specific framework conditions of this sector. The disintegration of value chains, relocation, and job losses must be avoided.”