Holger Lösch, Deputy Director General of the Federation of German Industries (BDI)

“The proposal contains some sound elements, but it neither provides adequate conditions for investment in Europe’s industrial transformation nor offers a convincing response to the ongoing deindustrialization.

The key challenge now is to further develop this reform in a way that strengthens not only climate protection but also industrial competitiveness. The proposed investment obligation is misguided. While the integration of international credits is a step in the right direction, its scope is far too limited. The expansion of emissions trading in the aviation sector, albeit modest, is highly problematic for Europe as a business location.

Emissions trading is an important instrument, but it cannot deliver the industrial transformation on its own. Many companies are willing to decarbonize but are unable to do so because they lack access to affordable green electricity, green hydrogen, or the necessary grid infrastructure. As long as these prerequisites are not in place, a rising CO₂ price will primarily increase costs rather than trigger investment in decarbonization.”