Friedrich Merz wants greater consideration given to the difficulties faced by industry

The German Chancellor wants the challenges faced by European industry to be given greater consideration in Europe’s climate action. The Chancellor was speaking before EU energy transition ministers meeting in Berlin, at a time when ministers from several member states were calling for a faster exit from fossil fuels in response to the energy crisis triggered by the war in the Middle East. Friedrich Merz stressed that climate action should not weaken industry in Europe, arguing that deindustrialization could turn part of public opinion against European climate policies.
The Chancellor’s remarks echo those of the Italian Minister of Industry, who wants the free allowances granted to industry under the EU ETS to be frozen at their current level. The German Chancellor nevertheless acknowledged that the EU ETS is a cornerstone of Europe’s fight against climate change. Germany is calling for a slower reduction in the number of free allowances allocated to industrial players than currently planned. A reform of the European emissions trading system is expected by the end of the summer.