Finnish stainless steel producer Outokumpu has welcomed the European Commission's proposal to revise the EU Emissions Trading System (EU ETS) for the period 2031-40, calling the ETS the EU's main tool for reducing industrial emissions and supporting the transition to a competitive low-carbon economy.
The company said the Commission's proposal retains the ETS as the main mechanism for pricing carbon emissions and encouraging investment in cleaner technology.
Call for strong and predictable carbon pricing
Although the proposal includes adjustments for the phase-out of free emissions credits and linear reduction factor (LRF), Outokumpu stressed that a strong and predictable carbon price must be maintained to continue to reward early investments in decarbonization
Outokumpu said it did not support the Commission's proposal to delay the previously agreed phase-out of free emissions allowances, arguing that such a measure would weaken incentives for industrial decarbonization, reduce the effectiveness of the Carbon Border Adjustment Mechanism (CBAM) and send the wrong signal to companies that have already invested in emissions reductions. The company added that while it supports the alignment of the LRF with the EU's 2040 climate targets, any changes to the proposed 4.4 percent annual reduction rate should be kept to a minimum to avoid weakening the EU's climate ambitions and leadership.
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