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Feature | CO₂ price
Published on: 04. November 2025

Emissions trading: Why adhering to free emissions allowances could harm industry

German Chancellor Friedrich Merz and Economics Minister Katherina Reiche are in favor of retaining free emissions allowances. (IMAGO / dts Nachrichtenagentur)

German industry faces billions of euros in extra costs when free emissions allowances expire. But maintaining the subsidies would tear a large hole in the EU Innovation Fund, intended to help finance decarbonization.

Nico Beckert

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Last updated: 04. November 2025

Emissions trading Europe Germany Chemical industry Industry Industrial emissions Industrial policy Steel industry Cement industry CO₂ price ETS
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