VCI on the European Parliament vote on the ETS reform

Carbon leakage protection is not sufficient

The draft for the revision of emission trading (ETS), as adopted today by the European Parliament, brings both light and shadow – so the VCI’s director-general Utz Tillmann. Some of the decisions will cause disadvantages for the European chemical industry in international competition: They are going to drive up the costs of purchasing allowances for the companies. Tillmann is hoping for amendments in the now following trialogue procedure.

VCI’s director-general is hoping for amendments in the trialogue between the EU institutions where the reform package can now be further developed. – Photo: © VCI/René Spalek
VCI’s director-general is hoping for amendments in the trialogue between the EU institutions where the reform package can now be further developed. – Photo: © VCI/René Spalek

The plenary of the European Parliament adopted today by a majority of votes the draft for the revision of the Emission Trading Directive (ETS). Utz Tillmann, director-general of the German chemical industry association VCI, comments: “Parliament did not bring itself to ensure sufficient carbon leakage protection. It is true that even tighter proposals were up for a vote. All the same, some of the EP decisions will cause disadvantages for the European chemical industry in international competition.”

Protecting the climate is essential for chemistry. According to Tillmann, the industry invests every year billions in new production technologies and inno¬vations which are important for climate protection. With emission trading the EU has created an instrument for achieving the necessary cuts in greenhouse gas emissions as favourably priced as possible. Tillmann: “The measures adopted by Parliament will drive up the allowance costs for companies. Therefore, it is crucial for the chemical industry to receive sufficient amounts of free allowances also in the future, in order to safeguard growth and investments.” Against the described background, it should always be taken into account that international competitors outside the EU do not have comparable costs.

For this reason, the VCI’s director-general is hoping for amendments in the trialogue between Parliament, Council and Commission where the reform package can now be further developed.

More information


The VCI represents the politico-economic interests of around 1,700 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, science and media.The VCI stands for over 90 percent of the chemical industry in Germany. In 2016 the German chemical industry realised sales of around 183 billion euros and employed 446,000 staff.

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Sebastian Kreth

E-Mail: kreth@vci.de