The emissions trading scheme, a cornerstone of EU climate policy since 2005, faces intense scrutiny from sectors struggling under the dual burden of high energy prices and rising carbon tariffs. For firms like Sweden-based SSAB, which has pioneered hydrogen-based steel production, any dilution of the current scheme risks rewarding laggards. Helena Norrman, executive vice president at SSAB, warned that weakening the policy would inadvertently grant a market advantage to companies that delayed their environmental investments.

Conversely, chemical and steel titans including BASF, ArcelorMittal, ThyssenKrupp, and Voestalpine argue the status quo is untenable. BASF CEO Markus Kamieth recently described the current system as obsolete, noting that Europe remains the only region globally where industries bear such direct costs for carbon dioxide emissions. In a joint appeal to the EU, these manufacturers demanded immediate intervention to cap rising ETS-related expenses, claiming that without reform, the bloc risks hollowing out its own industrial base while facing fierce competition from the United States and China.