Mar 18 • 21:13 UTC 🇩🇪 Germany FAZ

Italy's Employers: "The EU Emission Trading System Must Be Suspended"

Emanuele Orsini, the president of Italy's employers' association, is calling for the suspension of the EU Emission Trading System to alleviate the burden on industries amid rising costs.

In an interview with F.A.Z., Emanuele Orsini, the president of Italy's employers' association, has advocated for a significant relief for businesses through the suspension of the EU Emission Trading System (ETS). He argues that this system poses a threat to industries, particularly in Germany and Italy, which have the highest industrial share in the EU. The rising costs of emission rights—moving from around six euros per ton in 2017 to over 80 euros in January 2026—are unsustainable for energy-intensive sectors such as ceramics, glass, and paper.

Orsini expresses concern about the competitive disadvantage faced by European industries, especially when compared to American and Chinese companies, which do not endure similar emissions costs. He states that the situation is exacerbated by the absurdity of European companies needing to purchase emissions rights from China and Tesla, further straining the struggling automotive sector. This proposal highlights Italy's broader concerns about maintaining industrial viability under increasing regulatory pressures.

Overall, the demand to suspend the ETS reflects a growing frustration among European industrialists regarding the perceived inequities in global competition and calls for a reevaluation of how emissions trading can be adapted to better support local economies. With Italy and Germany leading in terms of industrial output within the EU, any major changes to the ETS could have significant implications for the future of European industry.

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