BASF warns on ‘excessive’ emissions levies for chemicals plants under EU plans

LONDON (ICIS)–BASF welcomed on Wednesday the EU’s Fit for 55 package targeting emissions reductions of 55% by 2030, compared with 1990 levels, but warned “excessive levies” on carbon emissions from chemicals plants could jeopardise the industry’s global competitiveness.

The German chemicals major said it was fully behind the package, which came as “confirmation of our company strategy to accelerate the reduction” of greenhouse gases (GHG).

Among other measures, the package presented earlier on Wednesday by the European Commission contemplates hefty increases for carbon emissions under the Emissions Trading System (ETS).

BASF added that it is too early to fully assess the impact that the measures could have on the European chemicals industry.

“Maintaining our competitiveness during the transformation to carbon neutrality is a condition for [the EU’s Green Deal’s] success,” a spokesperson for the producer told ICIS.

“Burdening existing plants with excessive levies can jeopardise this goal and would have the opposite effect to what we want to achieve in Europe with the Green Deal.”

The Fit for 55 package also addresses sectors such as energy or transport through taxation policies.

The European Automobile Manufacturers’ Association (ACEA), the key trade group for the region’s petrochemicals-intensive automotive sector, also said it was too early to asses the impact Fit for 55 could have.

The group said all its members support the target of carbon neutrality and are making significant investments in developing sustainable transport technology.

However, the proposed 55% carbon emissions reduction target would be very challenging for automotive, it said.

“[This] certainly requires a corresponding binding target for member states to build up the required charging and refuelling infrastructure,” the ACEA said.

“Moreover, the new carbon dioxide (CO2) target will significantly speed up the structural transformation of the automotive value chain, requiring careful management to minimise the impact on our economy and jobs.”

This adds pressure to increase market demand for electric vehicles (EVs) in a smaller timeframe, but support for the corresponding infrastructure is lacking.

The Commission recently released calculations that around 6m publicly available charging points would be needed to decrease CO2 emissions by 50% in 2030, but the latest plan only targets 3.5m charging points in the same timeframe.

ACEA president Oliver Zipse, also the CEO of German auto major BMW, said that without increased efforts by all stakeholders the proposed target is not viable.

“Ambitious climate targets need a binding commitment from all parties involved. The European Commission today made very clear that the Green Deal can only be successful with mandatory targets for the ramp-up of charging and refuelling infrastructure in all member states,” said Zipse.

Front page picture: European Commission president Ursula von der Leyen speaks to reporters in Brussels on Wednesday 
Source: Valeria Mongelli/AP/Shutterstock