CEO Position on the Revision of EU Emissions Trading System (ETS)

2 October 2026

The European Tool Association calls on the European Parliament and the Council to ensure that the revised EU Emissions Trading System (EU ETS) supports industrial decarbonisation while safeguarding the competitiveness of downstream manufacturing.

While the European tool industry is generally not directly covered by the EU ETS, manufacturers are exposed to its economic effects through energy prices and carbon costs embedded in key materials such as steel. CEO therefore calls for these indirect cost impacts to be better reflected in the future ETS framework and for carbon leakage risks to be considered across entire industrial value chains. At the same time, ETS-funded decarbonisation support should be accessible to downstream manufacturers, including SMEs and mid-sized companies, to remain internationally competitive.

You can find the full text of the CEO Position Paper in the Download section below.