Ahead of next week’s Competitiveness Council meeting on 28 May, Czechia, Greece, Poland and Romania submitted an information note entitled “The Impact of the EU ETS on Energy-Intensive Industries,” urging a more realistic adjustment of benchmarks to better reflect industrial and energy market conditions.

The four member states argue that the updated EU ETS benchmark values for the 2026–2030 period “pose significant challenges and risks for Europe’s energy-intensive industries” at a time of ongoing geopolitical turmoil and persistently elevated energy prices.

The signatory states particularly criticise the proposed revision of heat and fuel benchmarks, which foresees the maximum reduction allowed under existing rules — a 50% cut compared to the 2013–2020 period — warning that it would also increase costs for a wide range of industries.

The member states also warn that “many of the affected installations rely on fossil-based heat due to technological constraints or a lack of scalable and cost-effective alternatives,” adding that “the current methodology, which uses the 10% most efficient installations, no longer reflects the realities of what is physically possible.”

The note concludes that “a temporary freeze of benchmark values at their 2021–2025 levels, accompanied by an adjustment of the cross-sectoral correction factor (CSCF), would be a preferred solution.”

The European Commission has proposed updated benchmark values, which are now subject to consultation and review by EU Member States before their expected adoption by the executive at the end of June. The allocation of free allowances to industry is expected to follow shortly after the act enters into force.