Germany is lobbying the European Union to delay the phaseout of free carbon allowances under the EU’s Emissions Trading System (ETS), citing high energy costs and deindustrialization risks.
The ETS is set to tighten in 2026, phasing out free allocations for industries like steel, cement, and chemicals by 2034, replacing them with the Carbon Border Adjustment Mechanism (CBAM).
German Economy Minister Katherina Reiche stressed that free allocations must remain to prevent deindustrialization, warning that critical sectors risk collapse without safeguards.
Industry groups like Thyssenkrupp and the IGBCE union have voiced strong support, citing risks to steel competitiveness and warning that current rules are “killing our businesses.”
VietnamSteel by Hoa Sen Group
