That is not decarbonisation. It is deindustrialisation, paid for with public money.
Tomorrow, Tuesday 3 November, agricultural trade unions will rally in Brussels to defend the EU rule that links farm subsidies to respect for workers' rights, which is now under threat. IndustriAll Europe stands in full solidarity with the rally, organised by EFFAT, the European federation of food, agriculture and tourism trade unions, and with its demand that public money must never subsidise violations of workers' rights.
The same principle must apply to industry. Today, as part of our 'Enough is Enough' campaign, we publish a briefing that makes the case for Europe's energy-intensive industries: support under the ETS must come with binding social conditions.
€176.8bn handed out, without strong conditions
Under the ETS, companies must hand in one allowance for every tonne of CO2 they emit. Power plants buy their allowances at auction, but industry still receives most of its allowances for free.
Our analysis of EU registry data shows that between 2021 and 2025, industrial installations received 2.5 billion free allowances, worth €176.8bn at each year's average auction price. Just 20 publicly listed European companies received 40% of this support, worth €70.7bn. Over the same five years, these companies made €417bn in net profit and paid €327.3bn to shareholders in dividends and share buybacks. On top of their free allowances, they received at least €11.4bn in state aid and up to €2.4bn in EU Innovation Fund grants. These are conservative figures. The real level of public support may be even higher.
Meanwhile, industrial emissions have fallen by only 15% since 2005, against 53% for power plants and other combustion installations, which mostly pay for their allowances. Worse, some companies cut their emissions by producing less, not by producing cleaner. That is not decarbonisation. It is deindustrialisation, paid for with public money.
ETS review: a step forward, nothing for workers
In July, the European Commission proposed its review of the ETS. It would extend free allowances to 2038 for some sectors and to 2040 for others. From 2031, companies would only receive free allowances if they submit a plan to invest their full value in cutting emissions at their EU sites.
That is welcome, but it comes late. And the proposal sets no conditions on jobs, skills or collective bargaining. The only rule for taking allowances back applies to companies that move production outside the EU. A company could still cut jobs, close sites or pay out billions to shareholders, and keep its free allowances. Some of the biggest recipients are even lobbying European leaders to halt the rise in ETS-related costs and to block any further conditions on free allowances.
What we demand
IndustriAll Europe supports a reformed ETS with a predictable carbon price. We fully accept that energy-intensive industries need support during the transition. But that support must buy something in return. We demand that:
- all support to companies under the ETS comes with strong social and investment conditions, to secure the future of European industrial sites and their jobs;
- companies receiving support commit to climate-neutral plans, negotiated with trade unions, that safeguard jobs and secure investment in European sites;
- money from the EU's Innovation Fund and Modernisation Fund comes with binding commitments to keep jobs, train workers and guarantee that supported sites will not close.
Enough is enough. Public money must buy jobs and investment in Europe, not bigger payouts for shareholders.
Read the full briefing and find all campaign materials on the 'Enough is Enough' campaign page.
Notes
• IndustriAll Europe briefing: 'Enough is Enough: Binding conditionalities in the ETS to ensure a Just Transition for workers'
• EFFAT press release on the 3 November rally
• European Commission proposal for the ETS review