German chemical giant BASF has urged the European Union to overhaul its Emissions Trading System (ETS), warning that strict conditions are hurting industrial competitiveness. CEO Markus Kamieth said the current framework could cost jobs and value creation, though he supports the system's basic idea. The EU plans a broad review of the ETS later this year, with Ursula von der Leyen promising a more realistic emissions trajectory and extended free allowances beyond 2035. BASF is a major supplier to automotive and agriculture sectors, and its concerns reflect broader pressure from Germany and Italy to ease carbon costs amid high energy prices and supply chain disruptions from the Iran war. Critics argue the ETS adds burden when industry is already struggling, while supporters say weakening the scheme could slow decarbonization. The review will test whether the EU can balance climate goals with industrial resilience.
