Klimaschutz: 15 Verbände stemmen sich gegen Brüssels Klima-Pläne und fordern Unterstützung von der Regierung

Fifteen industry associations have come together to oppose Brussels' climate plans, demanding government support. The EU Commission aims to make the free allocation of emissions certificates dependent on companies presenting binding transformation plans and investing in decarbonization processes. However, the industry argues that this would further weaken their competitiveness.

The 15 associations write to Federal Environment Minister Carsten Schneider (SPD), Federal Economics Minister Katherina Reiche (CDU) and the Chancellery, urging them to oppose the plans in Brussels. They explain that assuming the value of the free allocation could serve as financing for transformation investments is incorrect, as the free allocation is not freely available capital, but a protective instrument against carbon leakage.

Carbon leakage refers to the relocation of companies due to high CO₂ costs. The associations clarify that the free allocation does not provide additional financial resources to companies, but only a partial relief from the costs caused by the emissions trade. The EU Commission presented its plans for revising the emissions trading system in mid-July, responding to pressure from some Member States and industry to relax the regulatory framework.

The actual function of the free allocation is at risk. The emissions trading system is the EU's main instrument for reducing harmful CO₂ emissions, with participating companies required to present a certificate for every tonne of CO₂ emitted. The number of certificates decreases annually, currently costing around 80 euros per certificate.

Participation is mandatory for the energy and industry sectors since their introduction in 2005, with emissions in these sectors dropping by 50 percent since then. The sectors of air and sea transport have also been included in the emissions trade. The associations argue that introducing additional investment requirements overlooks the true function of the free allocation and significantly weakens its effectiveness.

They point to the lack of infrastructure, such as hydrogen pipelines, and the lack of access to low-carbon energy at competitive prices. The 15 associations, including the Chemical Industry Association (VCI), the German Federation of Iron and Steel Industries, the Glass Industry Federation, the Copper Association, and the German Industry and Commerce Chamber (DIHK), signed the letter, with the Industry Energy and Commerce Association (VIK) as the initiator.

VIK comprises large energy consumers from the industry. Thinktank Epico reports that the arguments of the associations have gained support at the Thinktank. "The protection against carbon leakage must not become an investment obligation through the back door," says Epico CEO Bernd Weber. There must be "a clear division of labor in the instruments": the CO₂ price should set investment signals to protect companies in global competition, while the free allocation should protect them against carbon leakage.

However, Epico suggests a compromise: additional allocated certificates may be tied to conditions. This could be expanded later, by 2036, if it is clear that it will mobilize additional investments without weakening carbon leakage protection, says Weber. The unified position of the 15 associations is a clear stance, as not all industries participating in the emissions trading system view the Commission's plans the same way.

Some energy-intensive companies believe they are already making progress in transformation, thanks in part to billion-euro subsidies from the federal and state governments. They see a relaxation of the emissions trade with skepticism. "Who has invested billions in decarbonization early on should not be at a disadvantage compared to those who have waited," says Epico CEO Weber.

Those who have invested should be able to rely on the fact that the policy will not radically change the business case of investments made. "Where subsequent changes to the regulatory framework substantially worsen the business case of investments already made, there must be a targeted, temporary bridge," demands Weber. A study prepared by Epico in collaboration with the energy and climate-focused consultancy Frontier Economics, which is available to the Handelsblatt, proposes several measures to protect early adopters.

This includes recommending the recognition of already made investments to avoid having early adopters invest twice. Additionally, additional free allocations could complement early adopters. Where the business model of a company's already made decarbonization investment would change due to a later change in the conditions of the emissions trade, a "targeted and time-limited bridge" must be provided.