The European Chemical Industry Council (Cefic) warns that proposed changes to the EU Emissions Trading System could accelerate the decline of Europe's chemical sector. The new rules introduce flatter emission reduction targets and allow international carbon credits, but they remove existing protections against carbon leakage and replace them with complex investment conditions. Cefic President Markus Kamieth argues the proposal adds uncertainty instead of providing a realistic pathway for industrial transformation. Europe's chemical sector is already under severe pressure. High energy costs and global competition have eliminated 10% of production capacity, putting over 100,000 jobs at risk. Chemical investments in Europe fell by 86% last year. Industry leaders say companies need cheap energy, strong infrastructure, and viable green markets before they can invest billions in clean tech. As the proposal moves to EU lawmakers, Cefic urges officials to protect industrial competitiveness before manufacturing leaves Europe permanently.
