EU Council: Discussions on the ETS are heading in the right direction
Austria’s political initiative has taken its first steps—now concrete measures are needed to stabilize CO2 prices and ease the burden on industry
The Federation of Austrian Industries (IV) welcomes the initiative by Federal Chancellor Christian Stocker and other European heads of government to review the EU Emissions Trading System (ETS). “The fact that the call for a flattening of the current reduction pathway and an extension of free allowances is now being discussed at the highest level is an important signal for energy-intensive industry,” emphasizes IV Secretary General Christoph Neumayer.
Progress has already been made in the discussions within the EU Council. Now it is up to the European Commission to present fundamental and effective proposals by July 2026 at the latest. The announced review of the ETS must take place swiftly and include concrete measures to mitigate CO2 price volatility and provide relief on electricity prices—without undermining investment signals for renewable and low-carbon technologies. “The Commission is now called upon to make a swift and substantive decision. Industry needs planning security and internationally competitive framework conditions,” said Neumayer.
From the IV’s perspective, there is a need for a realistic evolution of the emissions trading system that balances climate goals with competitiveness. This includes, in particular, adjustments to the emissions reduction pathway, an extension of the free allocation of allowances, and measures to prevent additional burdens caused by high energy prices and the carbon border adjustment mechanism. Only in this way can we prevent industrial value creation from leaving Europe and ensure that the transition is successful.