EU-ETS: "The real risk facing Europe is not carbon leakage, but decarbonisation leakage" (CAN Europe)

"Any attempt to fundamentally dismantle the EU ETS would cripple investment in industry", stated Climate Action Network Europe in a letter sent to the European Council and the European Commission on 06/02/2026.

The NGO expressed its "concern at the increasing calls for a relaxation of climate and environmental regulations in the name of competitiveness". It believes that, on the contrary, "deregulation risks delaying investment, increasing dependence on fossil fuels and leaving Europe behind in the global race for clean industrial leadership".

" The real risk facing Europe is not carbon leakage, but decarbonisation leakage. Without a strong and predictable carbon price, the profitability of clean steel, green chemicals, circular materials and electrified industrial production collapses, and with it the effectiveness of future industrial policy tools such as the Industrial Acceleration Act", adds the organisation.

Climate Action Network Europe calls on the institutions to:
• Guarantee a solid and predictable EU ETS by maintaining the phasing out of free allowances and guarantees for a…