Environment Minister Carsten Schneider (SPD) has strongly opposed recent attempts to repeal CO2 pricing mechanisms. Reiterating his position on Friday, Schneider stated that the decarbonization of industry requires “reliable and economically viable frameworks”. He listed key components of this framework, including a stable CO2 price, a robust European Emissions Trading System featuring an effective Carbon Border Adjustment Mechanism, expanded hydrogen infrastructure, and competitive energy rates. According to Schneider, companies must have investment certainty to trigger the multi-billion investments necessary for achieving climate-neutral production.
The debate follows initial considerations by former Chancellor Friedrich Merz (CDU) concerning a possible delay or revision of the European Emissions Trading System earlier this month, amid calls for complete abolition from various industry representatives.
Addressing the current global situation, Schneider warned that the world is currently engaged in a “race for the top” in clean future technologies. He emphasized his desire for Germany and Europe to become hubs, ensuring that advanced products-such as electric cars, batteries, heat pumps, electrolyzers, and wind turbines-are built locally, extending even to the production of green steel.
To Schneider, the electrification of industry represents a crucial engine for innovation and growth in Germany. He framed the ramp-up of hydrogen, electric steel, renewable energies, and climate-neutral technologies not merely as environmental policy, but as “active and strategic industry and economic policy”.