More than 100 European companies, including major industrial players like Thyssenkrupp, Evonik, and Voestalpine, have signed a letter warning that the European Commission's proposed overhaul of the Emissions Trading System could raise costs for energy-intensive industries before they can fully decarbonize. The companies argue that without competitive energy prices, infrastructure, and demand for low-carbon products, the reform could accelerate production closures or relocation. The EU Parliament is set to vote on the reform in December. Analysts have raised carbon price forecasts, adding to concerns. The industry rejects plans to tie free CO2 allowances to decarbonisation investments in Europe, calling for fairer benchmarks instead. The outcome will shape the competitiveness of European manufacturing and the pace of its green transition.
