Voestalpine has joined a cross-border alliance of 79 European industrial companies in an urgent appeal to European politicians to extend the deadline for free CO2 allowances, Kallanish hears from the steelmaker.
On 23 October, the European Council in Brussels will make decisions impacting the European industry, but an extension of free CO2 allowances is not planned.
The 79 companies together represent about 500,000 employees in Europe. In an open letter, they urge European policymakers to abandon the planned phase-out of free allocations from 2026 to 2034 and to extend this deadline.
The Austrian steelmaker says it currently pays around €200 million ($233m) annually for CO2 allowances into the budget of Austria. It would have to spend an additional €1-2 billion between now and the end of 2030 to meet the increasing need for allowances.
The timeline for the phase-out of free allocations from 2026 to 2034 is unrealistic, voestalpine says. It adds that the basic prerequisites for a fundamental technological shift – such as the sufficient availability of low-emission electricity or hydrogen at competitive prices including the necessary infrastructure – will not yet be in place.
“We are a reliable partner in decarbonisation, but the EU must adapt its emissions trading and timeline to technological realities,” it emphasises.
Christian Koehl Germany
