In the debate about maintaining industrial competitiveness North Rhine-Westphalia Black-green state governments are now also easing certificate trading to reduce CO2 emissions. A “Chemicals and Refineries Pact for North Rhine-Westphalia” calls for a readjustment of climate-damaging carbon dioxide (CO2) prices through EU emissions trading reform, “to provide space for affected companies to produce competitively and at the same time not lose sight of climate targets”.
The pact was signed by the state government, industry associations and IGBCE trade unions, e.g Ministry of Economy announced. The country supports appropriate industrial demands.
New tone from the Minister of Economy
In mid-October, NRW Minister of Economy and Energy Mona Neubaur (Green Party) submitted demands from the SPD parliamentary group for the suspension or easing of the European agreement. Emissions trading is called a false signal. A complete suspension of these mechanisms would delay the necessary transformation process and weaken the credibility of European climate policy, Neubaur explained.
The Environment Minister is now recommending that companies emitting greenhouse gases should receive free emissions certificates for longer than previously planned. The industry needs a level playing field, he said. As long as there are no reliable safeguards against climate-damaging imports, “there needs to be functioning intra-European safeguards in emissions trading through the free allocation of emissions certificates so that production, added value and jobs are not lost,” Neubaur explained.
The head of Essen-based chemical company Evonik, Christian Kullmann, previously called for the abolition or significant reform of European emissions trading.
Opposition: Black-Green rolls back
The SPD opposition in state parliament spoke of a “180-degree turnaround” by the black-green state government. “Anyone who changes their policy suddenly shows one most important thing: the Green Party does not have its own industrial policy orientation,” said deputy head of the SPD parliamentary group Alexander Vogt.
FDP state leader Henning Höne explained: “Mona Neubaur’s fairy tale of a climate-neutral industrial state in North Rhine-Westphalia has finally collapsed.” This chemical pact is the coalition’s official statement: “Black-Green wanted to achieve climate neutrality through deindustrialization – but failed miserably.”
CO2 emissions trading
CO2 emissions trading is a market economic instrument to reduce greenhouse gas emissions. This is a system where companies have to prove their right to emit greenhouse gases and can trade with them. The total number of certificates available decreases over time, making certificates more expensive. This is intended to encourage investment in climate protection efforts.
In the “Chemical and Refining Pact”, the signatories also committed to competitive energy costs through permanent reductions in grid costs and electricity taxes as well as the introduction of industrial electricity prices. They also called for the development of efficient hydrogen networks, accelerated approval procedures, and competitive state legislation.
© dpa-infocom, dpa:251111-930-279005/1
