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Europe’s carbon market must cut emissions without cutting industrial production. In some industries, emissions have fallen alongside output and plant closures. The EU ETS revision should ensure that progress towards 2050 comes from investment and technology, not deindustrialisation. 

The Linear Reduction Factor should be adjusted after 2030 so allowances remain available through 2050. ETS revenues should support decarbonisation projects, while free allocation should continue where alternatives are not available at scale. 

For aviation and maritime transport, EU rules should align with international frameworks. Data centres should be removed from the scope where emissions come mainly from backup generators. These changes would link emissions reductions to investment while limiting the relocation of production outside Europe. 

Authored by Malte Lohan, CEO, AmCham EU

Europe’s clean industrial transition will depend on policies that can unlock investment, strengthen energy systems and support sustainable transport. From Tuesday, 16 to Wednesday, 17 June, AmCham EU travelled to the European Parliament in Strasbourg, France for a series of meetings on EU transport, energy and climate policy developments. The delegation engaged with Members of the European Parliament and political group advisers to share business perspectives on Europe’s clean industrial transition. Discussions focused on the Industrial Accelerator Act, the revision of the EU Emissions Trading System, the Carbon Border Adjustment Mechanism, the Grids Package and energy security. Members highlighted the need for predictable, technology-neutral rules that support investment, strengthen Europe’s industrial base and preserve openness to trusted partners.