Orion chief warns EU carbon policy risks shifting jobs, emissions to Asia

Houston, Texas – Orion SA chief executive Corning Painter has criticised the EU’s emissions trading system (ETS), arguing that the policy overlooks the “basic realities of chemistry, physics and manufacturing” when it comes to expectations from the carbon black industry.

In a ‘CEO letter’ published as part of Orion’s 2025 sustainability report 29 May, Painter said he supported the underlying objective of the ETS but warned that the current framework would undermine the competitiveness of Europe’s industrial base.

“The policy is simply going to result in shifting jobs and CO2 emissions from Europe to Asia, with no reduction in CO2,” Painter stated.

The ETS requires companies to purchase permits covering their carbon dioxide emissions, while the free allowances currently available to industry are due to be phased out over time.

According to Painter, expectations placed on the carbon black industry fail to account for several practical constraints.

One issue, said the Orion chief, is that CO2 is a low-energy molecule and converting it into useful products requires significant energy, which can itself generate further emissions.

Meanwhile, Painter said, separating CO2 is energy intensive. The process of removing CO2 from other emissions requires energy, which often generates more emissions.

Moreover, capturing or converting CO2 is expensive, said Painter, noting that ‘cost-conscious consumers are generally reluctant to spend more on sustainable products.’

The Orion chief called on EU policymakers to pursue “a more realistic path based on science,” combining innovation with incentives and what he described as "more judicious trade policies."

“The EU’s current policy will simply result in European manufacturing being replaced by production in India and China,” Painter said.

“This will not help the environment, and it will make the EU more dependent on imports for essential raw materials, such as carbon black.”

Orion said the ETS remains one of the most significant sustainability issues facing chemical industry leaders.