Ursula von der Leyen at the European Industry Summit on February 11, 2026. Author: SCANPIX/IMAGO/Bert Van Den Broucke
European industry leaders, in a meeting with politicians at a forum in Antwerp last Wednesday, called on the European Commission to soften or eliminate the ETS system that underpins EU climate policy and covers about half of the EU’s greenhouse gas emissions. However, von der Leyen rejected the appeal, Politico reported.
“I know there is a lot of discussion on this. However, the emissions trading system, or ETS, creates clear benefits. Since its introduction in 2005, emissions have fallen by 39 percent, while the sectors covered by the ETS have grown by 71 percent. This shows that decarbonization and competitiveness can go hand in hand,” von der Leyen said.
The head of the European Commission rejected the thesis that abandoning environmental policies will help European industry, emphasizing that only reducing the use of fossil fuels will reduce high energy prices, which most manufacturers consider their main problem.
“Gasoline prices are pushing up energy prices. Renewables and nuclear power are driving prices down,” she said. – The next few years will be extremely important because the International Energy Agency tells us that gas prices will remain low for the next three to four years. So we should use this time to invest in low-carbon energy systems that will protect us when fossil fuel prices rise again.”
Merz and Macron disagree
A few hours later, however, German Chancellor Friedrich Merz suggested that the emissions trading system should be reorganized.
“This system was introduced to reduceCO2 emissions and at the same time to allow companies to switch to CO2-free production. So if it is unachievable and if it is not the right remedy, we should be open to revising it or at least postponing it,” he said to loud applause from industry representatives.
“We must avoid anything that threatens the competitiveness of our industry. I completely agree with all those who say we must do more on climate change. But if those policies are being implemented at the expense of our industries, our jobs, that’s unacceptable. And so I agree with all those who say that if it’s not the right tool, we should talk about it. And if it’s not working, we should change it,” Mertz said.
French President Emmanuel Macron expressed a similar view. He warned of the dangers of abolishing the ETS, but at the same time emphasized that “Europe cannot set ambitious climate targets while allowing its industrial base to disappear. High energy prices combined with carbon costs are accelerating deindustrialization, not decarbonization.”
ETS – under increasing pressure
The ETS applies to heavy industry, power plants, airlines and shipping companies, which are required to pay a levy on greenhouse gas emissions per ton of CO2. This charge is currently around €80 per ton.
The system was expected to stimulate investment in cleaner production, energy and transportation projects. A small part of the quota is provided free of charge to companies, but this volume is constantly decreasing.
The cost of allowances has gradually increased as the number of emission allowances available for purchase in the sectors covered by the ETS has decreased each year. Although more countries around the world are establishing similar carbon markets, the price in the EU is the highest in the world.
Ahead of the Antwerp forum, the leaders of Austria and the Czech Republic, as well as the CEO of German chemical giant BASF and Italian industry association Confindustria, demanded action to reduce prices in the ETS, arguing that the levy is harming the competitiveness of European industry.
At the forum in Antwerp, industry representatives also ended with a call to reduce energy costs and carbon emissions, despite the fact that the summit moderator Ilham Kadri emphasized that the event was not dedicated to the ETS, err.ee writes.
Many companies also want to slow down or even suspend the gradual reduction of free allowances, which critics say would undermine the incentive for decarbonization created by the system.
