Mass factory closures loom in Europe without ETS freeze, industry warns

Europe's manufacturing sector faces a potential crisis, with estimates suggesting that maintaining the current Emissions Trading System (ETS) could cause a significant decline in industrial performance. Projections indicate a possible 30-40% reduction in output, directly and indirectly impacting up to five million jobs across the continent.

In response to these dire predictions, industry representatives are calling for immediate action from the European Union. They are urging the EU to implement a temporary freeze on the current level of the ETS. This measure is seen as crucial to prevent widespread factory closures and job losses.

The industry's demand for a freeze is contingent on specific conditions. They want the pause to remain in effect until two key issues are addressed: the development of economically viable green technologies that can compete with existing systems, and the resolution of competitiveness challenges related to international trade, particularly concerning imports and exports. Without these, European manufacturers fear they will be unable to compete globally.