IGBCE congress sets course for industrial policy reform

Hanover, Germany – The German trade union IGBCE has called for industrial reform in Germany amid ‘insurmountable pressure’ on energy-intensive sectors.

During a six-day conference in Hanover, attended by chancellor Friedrich Merz, vice chancellor Lars Klingbeil, and federal labour minister Baerbel Bas, the union adopted an initiative motion calling for rapid reform of the EU emissions trading system.

Closing the conference 25 Oct, the IGBCE warned that rising CO2 prices, combined with slow progress in transformation infrastructure, risk placing “insurmountable pressure” on energy-intensive sectors.

The motion called for postponing the phase-out of free CO2 certificates from 2026, stating that this would leave companies with more resources to invest in transforming their sites.

The union also called for the market stability reserve to be used to stabilise certificate prices and for continuous monitoring of transformation progress.

If emissions reductions and industrial transformation do not converge, the IGBCE proposed “a temporary opt-out” for affected sectors, allowing them to pause participation in the EU system to support investment and prevent closures.

“We are strongly committed to a reality check on European emissions trading,” said chairman Michael Vassiliadis.

“The current concept is not working. Without adjustments, we risk plant shutdowns, the loss of industrial value creation and good jobs.”

The union said the proposed reforms are intended to ensure that climate protection and industrial employment can proceed together, rather than at odds.

“We have identified the concerns of our members and industries and developed solutions with diligence and seriousness,” said IGBCE president Michael Vassiliadis at the close of the congress.

He said the decisions taken show that “there are ways out of the crisis”, including new paths to industrial growth and secure jobs in Germany.