European Strategic Industries Intensify Lobby Against CO2 Cost Increases Threatening Industrial Competitiveness
European strategic industries, notably the ceramics sector, are escalating their lobbying efforts in Brussels to halt the implementation of new CO2 regulation frameworks set for 2026-2030. The proposed regulations would impose an additional annual cost of approximately 160 million euros on the ceramics manufacturer from Castellon alone. Several sectors with high energy consumption, such as cement, construction, transport, energy, batteries, semiconductors, food security, and defence, unified in February through a manifesto warning of current crises and international uncertainties.
They argued that the necessary infrastructure for effective decarbonisation within the stipulated timelines is lacking. This claim is reinforced by the ongoing conflict in Iran, which elevates energy price volatility and geopolitical risks. The sectors demand a suspension of reductions in free allowances under the EU Emissions Trading System (ETS) and reject the application of the Cross Sectoral Corrective Factor (CSCF). Without intervention, they foresee a reduction of up to 34 per cent in free allocations for energy-intensive industries compared to the 2021-2025 period, risking their global competitiveness.
The industries highlight that rising carbon costs undermine the EU's Clean Industrial Deal objectives, paradoxically weakening companies ability to invest in future decarbonisation. They emphasise that ETS revenues should be fully redirected to support industry investments in low-carbon solutions instead of burdening businesses with disproportionate costs. Currently, the carbon price is approximately four times higher than pre-pandemic levels, exacerbating economic strains and enabling unfair trade practices, including disruptions from US tariffs.
Parallel to the lobbying, the ceramics industry association, Ascer, has coordinated efforts over the past two months to oppose the EU's CO2 plans. This includes garnering support from regional authorities, the Spanish Confederation of Business Organisations (CEOE), and political parties across the spectrum like PP, PSOE, and Compromis. High-level meetings have taken place with Industry and Climate Ministries and with Brussels officials, including the Vice President of the European Commissions Office, Teresa Ribera. Additionally, the Spanish Congress has passed a non-legislative resolution advocating for the ceramic sector.
The current geopolitical tensions, especially the potential disruption of energy supplies from the Strait of Hormuz, could force Brussels to reconsider its decarbonisation roadmap. Industry representatives stress that technological readiness remains a barrier to immediate decarbonisation, with industry leaders admitting that the necessary innovation is not yet fully mature for rapid deployment. The convergence of energy supply concerns and current regulatory pressures raises the possibility of policy adjustments to avoid economic drawbacks and preserve industrial competitiveness within Europe.