Five EU Countries Ask for More Flexibility on Carbon Costs for industry

Five European Union countries are asking Brussels to make carbon rules easier for industry. Austria, Czechia, Hungary, Slovakia and Poland say European factories face high costs as they work to cut carbon emissions.

They warn that these costs could push some companies to move their factories and investment outside Europe. The countries want more time and flexibility under the EU Emissions Trading System. The system makes companies pay for the carbon they release.

Steel, cement and chemical companies are among the industries covered by the system. The five countries say factories need better support before they make large investments in cleaner technology. They want affordable electricity and stronger power grids.

They also want enough hydrogen and better systems to move and store carbon dioxide.

Austrian Industry and Energy Minister Wolfgang Hattmannsdorfer called for an “export discount.” He said European companies face problems when they compete with companies outside the EU that may not face the same carbon costs.

The European steel industry also supports a careful approach. Alex Eggert of Eurofer said the steel industry wants to become climate neutral while keeping production in Europe.

The EU carbon market has already helped cut emissions. EU figures show that emissions from sectors covered by the system have fallen by more than 50% since 2005.

The system has also raised more than €270 billion in revenue. However, EU countries remain divided over plans to change the carbon market.

The five countries say Europe needs to protect its industry while it works toward cleaner production. The debate now centers on how Europe can cut emissions without making it too costly for factories to stay and grow in the region.