Italian Confindustria calls for broader EU industrial policy beyond ETS reform

The proposed revision of the EU's Emissions trading system (ETS) is a necessary step, but it will not be enough on its own to protect Europe's industrial base, was the message of Antonio Gozzi, Vice president of Italian Confindustria for European Strategic Autonomy, the Mattei plan and competitiveness policy in relations with EU institutions, as he He called for a broader and more structured European industrial strategy.

According to Gozzi, the Executive Vice-Presidents of the European Commission, Rafael Fitto and Stephane Sejournay, deserve credit for supporting a more pragmatic review of EU decarbonization policy and for pushing the European Commission's Directorate General for Combating Climate Change to recognize that some of the main pillars of the ETS need to be reviewed. These include the volume of benefits, control levels, linear reduction ratio (LRF), and market Stability reserve (MSR), which were previously considered largely untouchable.

However, Gozzi argued that the changes currently under discussion remain insufficient, as they do not form part of a broader strategy capable of aligning Europe's climate goals with the competitiveness of its industrial sector.

The EU must move beyond a predominantly regulatory approach and complement the ETS review with a genuine European industrial policy. Such a strategy should support the recovery of manufacturing activity and contribute to the achievement of the EU's stated goal of bringing the share of industry in GDP to 20 percent.

Gozzi also noted that the willingness to review key ETS mechanisms already represents a significant shift from the previous approach. However, he stressed that the next steps would require stronger political intervention from the EU heads of state and government, and then from the European Parliament.

As previously reported by SteelOrbis Confindustria has already highlighted the impact of rising CO₂ prices on the energy and operating costs of European producers. Gozzi's latest statement broadens the scope of the debate, shifting the focus from targeted ETS adjustments to the need for a comprehensive industrial policy capable of supporting decarbonization without further weakening manufacturing competitiveness in Europe.

Chiara MassacchiEditor

I work as a Market information and content specialist at SteelOrbis, specializing in the ferrous scrap and steel markets, with a particular focus on Pakistan and the Bangladesh Scrap Metal Markets. I have experience in oral and