ThyssenKrupp Seeks Fair Reform in EU Emissions Trading Scheme

EU Commissioner for Employment and Social Rights Mr Nicolas Schmit has been apprised learned about ThyssenKrupp’s plans for climate-neutral steel production. He was accompanied by NRW's Minister of Labor and Social Affairs Mr Karl-Josef Laumann and European Parliament for the Ruhr region Member Dennis Radtke. Senior ThyssenKrupp officials welcomed the guests and, during a plant tour, explained the dimensions and employment-related challenges of the transformation.ThyssenKrupp officials took this opportunity to express the steel industry's great concern that an overly ambitious redesign of the European emissions trading system would achieve precisely the opposite of the actual objective. They said “We want a climate-neutral European industry and we intend to achieve the climate targets. ThyssenKrupp Steel plans to invest around 7 billion euros in transforming Europe's biggest steel site with hydrogen-based production processes. This would also make us the largest European consumer of hydrogen. Our transformation project has the potential to give a massive boost to building a hydrogen economy. However, if the burdens from European emissions trading increase drastically from 2026 onwards, we will be deprived of the means to invest. We can only spend the money once. This would massively jeopardize the start of the transformation, and value creation, employment and social security would be at risk. We therefore propose that companies with a proven track record of investing in the transformation should be exempt from the planned reduction in free allocations by 2030. We strongly advocate that Germany's national and regional governments lobby Brussels for an economically fair solution that serves climate goals.”The European Parliament will vote on 7/8 June on the Commission's proposals for continuing European emissions trading from 2026 onward. Most recently, the Parliament's Environment Committee tightened up the Commission's proposal. On this basis, the free allocations granted to date under emissions trading would be reduced and eventually eliminated by 2030.

ThyssenKrupp Seeks Fair Reform in EU Emissions Trading Scheme

Strategic Research Institute

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