Federal Environment Minister Carsten Schneider (SPD) has announced that he will grant the chemical industry a larger share of free CO₂ permits than had been originally planned. Speaking to “Handelsblatt”, he said, “I am pushing for more realistic standards for the allocation of free emission rights in Brussels. The chemical sector is under international pressure, and we take that seriously”.
Schneider praised the emissions‑trading system, describing it as a “good job” done as a market‑based tool that successfully combines climate protection with economic strength. He stressed that the conditions must be designed so Germany and Europe can remain strong, innovative chemical hubs.
According to his ministry, Schneider has approached the European Commission to secure quick solutions. He first discussed the matter with representatives of companies, industry associations, and trade unions from the chemical sector. The position now presented to Brussels was jointly developed with the federal government. The aim is to provide an attractive production and investment environment for Germany’s chemical industry and to prevent the shifting of emissions overseas.
The two CO₂‑emissions‑trading schemes are the EU’s main climate‑protection instruments, limiting the total amount of CO₂ certificates that can be emitted in different sectors. From this year, the free allocation of certificates will be sharply reduced. If a sector receives more free permits, the pressure on that sector to transition quickly to climate‑friendly solutions lessens, while pressure on other sectors-such as the energy industry-may increase because the overall allowance cap remains unchanged.
In Germany, revenues from CO₂‑emissions trading feed into the Climate and Transformation Fund. These funds finance projects such as the expansion of renewable energies, promotion of electric mobility, building energy renovation, hydrogen initiatives, and the shift to climate‑friendly industrial processes. Lower revenues therefore also mean lower funds available for these initiatives.