How Will Changes in CO₂ Emission Fees Impact Manufacturing Companies in Europe?

How Will Changes in CO₂ Emission Fees Impact Manufacturing Companies in Europe?

The rising costs of CO₂ emissions under the EU Emissions Trading System (EU ETS) will significantly affect manufacturing companies across Europe. Here's what it means for businesses using industrial machinery and how they can prepare for these new challenges.

High-emission industries such as steelmaking, cement production, and chemicals will face increasing costs due to the need to purchase additional CO₂ emission allowances. As of 2023, the price of these allowances reached €80–90 per ton and is expected to rise further.

Companies relying on outdated, less efficient machinery may bear additional costs related to their operation, making modernization a critical step.

New regulations will drive companies to seek energy-efficient and eco-friendly solutions:

• The rising cost of emissions will accelerate the replacement of older machines with modern ones that consume less energy and emit less carbon dioxide.
• Investing in used, low-emission machines may become a popular solution, offering cost-effective modernization compared to purchasing brand-new equipment.

Companies that fail to adapt to new requirements risk losing their competitive edge:

• Higher energy and emission costs will increase product prices, potentially leading to a loss of customers.
• Businesses adopting low-emission technologies will benefit from reduced operational costs and an improved reputation among partners.

Reforms in the EU ETS also present opportunities for companies dealing in used machinery:

• Demand for energy-efficient used machinery is expected to grow, as businesses seek ways to reduce costs without compromising on upgrades.
• Offering customers guidance in selecting environmentally compliant machines can enhance trust and drive sales.

Changes in CO₂ emission fees force European manufacturing companies to adapt to stricter regulations. Modernizing machinery is key to maintaining competitiveness and reducing costs. In this context, the trade in energy-efficient used machinery offers a practical solution, supporting companies in transitioning to more sustainable production.

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