BASF warns of EU planned 'excessive' emissions tax on chemical plants

On the 14th, BASF welcomed the European Union's Fit for 55 programme, which aims to reduce emissions by another 55% by 2030 from 1990 levels, but warned of an "excessive taxation" of carbon emissions from chemical plants.
could jeopardize the global competitiveness of the industry
.

The German chemical giant said it fully supported the package, which was "a confirmation of our company's strategy to accelerate the reduction of greenhouse gas emissions"
.

Among other measures, the European Commission's package proposed earlier on Wednesday considered a significant increase in carbon emissions under the Emissions Trading System (ETS)
.

BASF added that it was too early to fully assess the impact these measures could have on the European chemical industry
.

"Maintaining our competitiveness in the transition to carbon neutrality is a condition for the success of the (EU Green Deal),
" a spokesman for the producer said
.

"Excessive taxation of existing factories could jeopardize this goal and would have the opposite effect of what we hope to achieve in Europe with the Green Deal
.
"

The Fit for 55 program also addresses sectors such as energy or transportation through tax policy
.

The European Automobile Manufacturers Association (ACEA), the main trade body for the petrochemical-intensive auto industry in the region, also said it was too early to tell what impact the Fit for 55 package might have
.

The group says all members support the goal of carbon neutrality and are investing heavily in sustainable transport technologies
.

However, it also said the proposed 55% carbon reduction target would be very challenging for the auto industry
.

"This of course requires members to set corresponding binding targets to build the required charging and refueling infrastructure,
" ACEA said
.

"Furthermore, the new CO2 targets will significantly accelerate the structural transformation of the automotive value chain, which needs to be carefully managed to minimise the impact on our economy and employment
.
"

This has increased the pressure to increase the demand of the electric vehicle market in a relatively short period of time, but the support for the corresponding infrastructure is lacking
.

Calculations recently published by the European Commission suggest that around 6 million public charging points will be needed in 2030 to reduce CO2 emissions by 50%
.

ACEA president Oliver Zipse, who is also chief executive of German auto giant BMW, said the proposed target would not be feasible without further efforts from all stakeholders
.

"Ambitious climate targets require binding commitments from all parties involved
.
The European Commission has made it very clear today that the Green Deal will only succeed if all member states mandate improved charging and refueling infrastructure,
" Zipse said.

.