German trade union says European emissions reform 'not enough'

Hanover, Germany – German industrial trade union IGBCE has welcomed the European Commission's proposed reforms to the EU Emissions Trading System (ETS) but warned that the changes "are too timid" to safeguard Europe's energy-intensive industries.

In a 17 July statement, IGBCE chairman Michael Vassiliadis said the proposals "fall short", arguing that "the time gained for the transformation of industry is too small, and the targets are only slightly less utopian."

"In short: More is needed," he said, stressing that emissions trading can only succeed "if it leads to modernisation, growth and new jobs – and not to decline and relocation."

According to IGBCE, many energy-intensive companies have already shut facilities because existing ETS rules pointed to rapidly rising carbon allowance costs from 2028 onwards, making "CO2-neutral production by 2039 impossible."

"Their emissions are still being generated, however – just elsewhere and often in greater quantities than would have been the case in Europe," the union added.

Under the Commission's proposals, "the number of [emissions] certificates will now decrease more slowly, and the emissions reduction pathway is likely to be extended until the mid-2040s." 

However, Vassiliadis argued that even the revised timetable remains unrealistic unless policymakers accelerate investment in supporting infrastructure.

"Only if policymakers create the foundations for a secure supply of affordable green electricity and hydrogen, as well as for sufficient CO2 storage, as quickly as possible will we be able to successfully manage the transformation," he said.

The IGBCE chief also backed plans to link the allocation of free emissions allowances to industrial investment.

"We have always demanded that there must be incentives for investment, location, and job commitments from companies in Europe," he said.

"How far the Commission has followed this line of reasoning remains to be seen," he added.