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Bündnis Faire Energiewende: “Germany should suspend national CO₂ pricing”

Berlin – The Bündnis Faire Energiewende (BfE), an alliance of industrial associations in Germany, has called on the federal government to temporarily suspend national CO₂ pricing following the decision of EU environment ministers to postpone the launch of the EU Emissions Trading System II (EU-ETS 2).

Bündnis Faire Energiewende: “Germany should suspend national CO₂ pricing”

BfE spokesperson Christoph René Holler said: “In the third year of recession, such a one-sided cost burden on German industry is no longer sustainable. Maintaining national CO₂ pricing continues to significantly weaken the competitiveness of energy-intensive industries.”

According to the alliance, the EU-level delay of ETS 2 provides an opportunity for Berlin to introduce relief measures for industry. Holler stated: “The period before CO₂ pricing takes effect for SMEs across Europe should be used to establish an effective carbon leakage protection mechanism.”

The statement emphasized that misguided industrial policies and high production costs have already led to production shifting abroad, threatening the foundations of German industry. Holler added: “Deindustrialization in Germany will accelerate dramatically if the government does not immediately stop the additional burdens on companies.”

BfE represents around 10.000 SMEs across Germany. While the alliance supports the green transition of industry, it stressed that this requires fair energy prices and competitive electricity tariffs. Holler particularly highlighted the necessity of introducing a broadly effective industrial electricity price: “It would be a major mistake to limit support only to the sectors listed in the EU’s KUEBLL list. Many industries that rely on thermal processes and could at least partially electrify are being left out.”

BfE also stated that suspending the BEHG CO₂ levy for small installations, reducing electricity prices across all industrial sites, and abolishing the gas storage levy for gas-dependent industries would not be sufficient to offset politically induced competitive disadvantages; the government must take additional measures.

The alliance includes organizations such as the Federal Foundry Industry Association (BDG), the Federal Association of the Ceramic Industry (BKİ), the German Textile and Fashion Industry Federation, and associations representing the rubber, plastics, steel, and metal processing sectors. Together, the alliance represents over 10.000 companies with around one million employees and an annual turnover of approximately EUR 200 billion.

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