The powerful BCE union has terminated its climate cooperation and is now opposing the core of climate policy. It has long supported the energy transition, the coal phase-out, and the nuclear shutdown. Now, however, Michael Vassiliadis declares: “It’s killing our companies.” This puts emissions trading, considered a key instrument, at the center of criticism. The Federal Ministry for Economic Affairs and Energy is clear: a ban on combustion engines or an accelerated coal phase-out are unnecessary, as the European system automatically ensures lower emissions. (welt: 28.08.25)
Dispute between politicians and trade unions
The latest report by the Scientific Advisory Board states: “The European emissions trading systems have implemented a market-based system to achieve climate targets.” According to this logic, government interventions such as the Heating Act increase costs without providing any additional benefits. Many experts consider emissions trading to be the most efficient form of climate protection.
But the industrial crisis is deepening. Michael Vassiliadis, head of the BCE union, is launching a head-on attack on climate policy: “This concept won’t work. It will destroy our companies.” He thus focuses his criticism on emissions trading and the rising price of CO₂.
Chemical industry in a stranglehold
Vassiliadis backs up his arguments with figures. Take Ineos in Cologne, for example: The company bears a cost disadvantage of €100 million for gas, €40 million for electricity, and an additional €100 million for CO₂ certificates. “Ineos is not an isolated case, but the rule.” Every year, the EU Commission reduces the number of tradable allowances by 4.3 percent. From 2026, free allocations will only be available subject to conditions.
The result: The price of CO₂ is rising rapidly. “You can neither save nor convert against this,” explains Vassiliadis. The industrial crisis is hitting the chemical industry particularly hard, which relies on CO₂ emissions rights. Production levels are 20 percent below pre-Ukraine war levels. More than 260 companies have already cut jobs, a total of 28,000.
Shutdowns and Closures
Another 70 companies have implemented short-time work, affecting 12,000 employees. “More than 200 of these cases involve plant and factory closures. So we’re talking about industrial value creation that has been lost forever.” According to the union, the high CO₂ taxes are contributing significantly to this industrial crisis.
While Europe pays high prices, competitors benefit. “In China, a ton of CO₂ costs only one-seventh, in Japan only one-seventieth, of what our companies pay in Europe. And in the US, as is well known, there is no trading of emissions certificates at all.” The CO₂ price has become a massive competitive disadvantage, costing more and more jobs in Germany.
Between Dream and Reality
“The CO₂ price has long since developed into a massive competitive disadvantage.” Technologies, infrastructure, and energy sources are lacking for CO₂-free production. This industrial crisis highlights the gap between political goals and economic reality. The EU is increasing the pressure every year, and even more so from 2026 onwards. “In just five years, a quarter fewer credits will be available. We can all imagine what that will mean for prices.”
The BCE union is therefore calling for immediate aid. Many companies are “in intensive care.” Without rapid intervention, further jobs are threatened. Exemptions for individual companies from emissions trading or additional free allocations are conceivable.
Consequences for Consumers
Relieving the burden on industry would have a direct impact on households. Because if heavy industry receives protection, others will bear the costs. According to forecasts by ADAC and Bloomberg, the planned “Emissions Trading 2” could increase the prices of heating energy and fuel by 22 to 27 percent starting in 2027. The CO₂ price therefore affects not only companies but also millions of consumers, whose jobs and purchasing power are increasingly under pressure.