European chemical giants are expressing significant concerns over the high carbon prices set within the EU emissions trading system (ETS), prompting calls for reform from industry leaders. At a meeting in Antwerp, these stakeholders are seeking to persuade the European Commission President Ursula von der Leyen and national leaders to reconsider the current emissions reduction strategy, which they believe is jeopardizing the competitiveness of the sector. The chemical industry is one of Europe's largest and, according to executives, it is currently facing a crisis exacerbated by elevated carbon costs that are not paralleled in other jurisdictions around the world.

Markus Steilemann, the CEO of German chemical company Covestro, highlighted the disparity, stating that foreign competitors do not face similar trading systems for emissions, thus undermining the competitive position of European firms. This sentiment encapsulates the wider worry shared among industry leaders that the existing ETS framework might lead to an unsustainable business environment for local manufacturers. The executives are advocating for reforms that would align the EU’s climate ambitions with the realities of global competition, aiming for a balance that ensures sustainability without compromising industry viability.

As the ETS serves as the EU's primary instrument for reducing CO2 emissions, any proposed changes would signify a critical moment for the region’s climate policy and economic landscape. A reform of this kind could redefine how the chemical sector navigates its ecological responsibilities while maintaining its role as a cornerstone of Europe's economy, signaling a broader shift in thinking about climate-related regulations amidst rising international competitiveness in industrial sectors.