Salzgitter CEO Warns ETS Reform Could Undermine Europe’s Industrial Decarbonisation Investments
Salzgitter AG CEO Gunnar Groebler has warned that proposed reforms to the European Union Emissions Trading System (EU ETS) could weaken the business case for industrial decarbonisation projects and put billions of euros of low-carbon investments at risk.
Commenting on the European Commission’s ETS reform proposal, Groebler said the move represents an effort to balance economic competitiveness with climate goals, while welcoming the decision to maintain the market-based structure of the ETS. However, he cautioned that planned relief measures for energy-intensive industries after 2030 could create uncertainty for companies already investing heavily in emissions reduction technologies.
According to Groebler, changes to the regulatory framework risk reducing the attractiveness and financial viability of innovative low-carbon industrial projects, potentially slowing investment and affecting Europe’s industrial resilience.
“Like many other European companies, we have already invested billions in decarbonisation – placing our trust in a stable and reliable regulatory framework,” Groebler said. He argued that policies which alter investment conditions after commitments have been made could leave early movers disadvantaged.
The warning comes as Salzgitter AG approaches the commissioning phase of its SALCOS (Salzgitter Low CO₂ Steelmaking) project, one of Europe’s major efforts to replace conventional steel production methods with low-carbon technologies based on hydrogen and renewable energy.
Groebler said first movers require stronger support mechanisms to ensure pioneering projects do not become stranded assets. He called for more ambitious lead markets for low-carbon products manufactured in Europe, competitive energy and hydrogen prices in Germany, and greater reinvestment of national ETS revenues into industrial transformation.
“Those who invest relying on European legislation – or who, like us, have already invested – must not be penalised in the end,” he said.
The Salzgitter CEO also highlighted that around 90% of European decarbonisation projects have yet to reach a final investment decision, making regulatory certainty a critical factor in accelerating future industrial climate investments.
The EU ETS reform proposal will now move through discussions involving the European Council and European Parliament, where Groebler urged policymakers to strengthen investment certainty and preserve the competitiveness of Europe’s industrial transition.
