More than 100 European energy-intensive companies, including Covestro and Voestalpine, have signed a letter warning that the European Commission's proposed Emissions Trading Scheme (ETS) overhaul could raise costs and accelerate factory closures or production relocations. The reform, which the European Parliament will vote on in December, aims to tighten carbon pricing and make free allowances conditional on local decarbonisation investments, but industry says the plan lacks support for competitive energy prices, infrastructure, and demand for low-carbon products. The companies argue that without changes, the reform will increase costs at a time when they already face high energy bills and global competition. They are pushing for fairer benchmarks and reject the conditionality of free allowances. Analysts are also raising forecasts for EU carbon prices, adding to concerns about the transition's cost. The outcome of the December vote will be critical for Europe's industrial base and its ability to decarbonise without offshoring production.
