Black-Green in NRW for Easing of Emissions Trading - Germany’s Green Minister Faces Backlash Over EU Carbon Market Reforms
Mona Neubaur, the Green minister for economic affairs and energy in North Rhine-Westphalia, has sparked debate by advocating for extended free allocations of emissions allowances for companies emitting greenhouse gases. This move, supported by the steel industry and climate transition groups, aims to balance industrial competitiveness with climate targets. However, the SPD opposition has criticised the coalition's shift in stance on the EU's emissions trading scheme.
The 'Chemicals and Refining Pact for NRW', recently signed, calls for adjustments to CO₂ pricing via reforms to the EU Emissions Trading System (ETS). The ETS, a market-based tool, requires companies to hold allowances for each ton of CO₂ emitted. The steel industry, including companies like Salzgitter Flachstahl GmbH and Stahl-Holding-Saar (with Dillinger and Saarstahl), backs Neubaur's calls for temporary releases of emissions certificates to safeguard operations.
The pact's goal is to provide affected companies with 'breathing room' to remain competitive while still meeting climate targets. The North Rhine-Westphalia coalition government is now advocating for relaxed rules in the EU's carbon emissions trading system to preserve industrial competitiveness.
Mona Neubaur's push for extended free allocations of emissions allowances has sparked controversy, with the SPD opposition accusing the coalition of a '180-degree reversal' in its stance on the EU's emissions trading scheme. The 'Chemicals and Refining Pact for NRW' aims to balance industrial competitiveness and climate targets through adjustments to CO₂ pricing. The debate highlights the complex challenge of transitioning to a low-carbon economy while preserving industrial competitiveness.
