Voestalpine, together with nearly 80 industrial companies across Europe, has appealed to EU policymakers to extend the deadline for free CO2 allowances, warning of severe economic and environmental consequences if the current phase-out plan proceeds.
The companies, representing around 500,000 employees, issued an open letter to European leaders urging them to delay the phase-out of free allocations scheduled between 2026 and 2034.
Voestalpine currently pays about EUR 200 mln (USD 233 mln) annually for CO2 allowances into Austria’s budget. Without an extension, the company estimates an additional EUR 1-2 bln (USD 1.1-2.3 bln) in costs by 2030, threatening competitiveness, jobs, and its greentec steel transformation project. CEO Herbert Eibensteiner cautioned that further investment in the transformation would no longer be viable, and some production processes could shift outside Austria.
Voestalpine stressed that the planned Carbon Border Adjustment Mechanism (CBAM), to be fully implemented in 2026, cannot replace free allowances, as it fails to provide sufficient protection against carbon leakage.
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