Ahead of the European Council meeting on October 23, Austrian steel company Voestalpine joined nearly 80 industrial companies in calling on the EU to extend free carbon credits under the EU Emissions Trading System (ETS).
In a joint letter to EU policymakers, the companies warned that ending the free allocations as planned would create serious economic and environmental disadvantages, threatening competitiveness and industrial employment in Europe.
€ 2 billion by 2030 year
Voestalpine currently contributes approximately €200 million annually to the Austrian state budget through carbon payments. Without an extension, the company estimates additional costs of €1-2 billion by 2030, adding that such a financial burden would undermine its Greentec steel transformation project and undermine job security.
The company stressed that this increase would make its low-carbon transition economically infeasible, potentially leading to to move production outside Austria.
Unrealistic phase-out schedule
Under current legislation, free benefits will be phased out in the period from 2026 to 2034. However, Voestalpine argues that this timeline is unrealistic given the lack of affordable renewable energy and hydrogen infrastructure.
The company reiterates its support for industry decarbonization, but urges the EU to adjust the ETS timeline in line with technology and market considerations realities.