Confindustria calls for pragmatic reform of EU ETS to protect industry competitiveness

Antonio Gozzi, Special Adviser on European Strategic Autonomy, Competitiveness and the Mattei Plan at Confindustria, the main association representing manufacturing and service companies in Italy, once again drew attention to the need to review the EU Emissions Trading System (ETS), stressing the importance of correcting some of the mechanisms that currently risk undermining the competitiveness of the European industry. He made this statement in Brussels during a Confindustria press conference on the issue.

According to Gozzi, ETS has played an important role in the decarbonization of European industry, but the events of recent years have made pragmatic actions necessary. He recalled that since 2017, the price of CO₂ has increased from about 5-8 euros per metric ton to almost 100 euros per metric ton, which has led to a sharp increase in costs for the European production system. This increase, he noted, has no equivalent in the main competing economies: in markets such as California, for example, the price of carbon is about $25 per metric ton.

Gozzi also stressed that the impact of ETS does not only affect direct emissions from companies, but also affects energy costs. According to various estimates, this mechanism contributes about 25-30 euros./MWh is included in electricity prices during the hours when prices are set by gas-fired thermal power plants. This is a particularly significant factor in Europe, he noted, where energy prices are already significantly higher than in other major economic regions.

For this reason, Confindustria is calling for a pragmatic review of the ETS, taking action on mechanisms that have contributed to excessively reducing quota availability and increasing costs for companies, while not questioning decarbonization goals. "It is positive that this issue has finally entered the European debate," Gozzi said, reiterating that the goal should be to combine environmental transition and industrial competitiveness, while preventing European companies from being at a disadvantage compared to their international competitors.

Gozzi's latest remarks are part of a debate that has already arisen in recent weeks, when he has repeatedly highlighted the critical problems associated with ETS and the need to correct its impact on European industry. This issue is in the broader context of increasing pressure on the energy sector and regulatory costs, which Confindustria believes should be addressed through measures that can support the transition period without jeopardizing the continent's industrial sustainability.