Business · Energy & Commodities · 5 hrs ago
Rising carbon costs put pressure on struggling German industries
German Chancellor Friedrich Merz wants the EU emissions market to remain unchanged and has urged European Commission President Ursula von der Leyen not to alter it.
The market requires companies to hold permits for the greenhouse gases they emit.
Struggling steel, chemical and paper companies face rising costs as well as high energy prices and weak demand.
The average price of a carbon permit was nearly €74 per tonne last year and is now around €88, after briefly topping €90 in early November.
The EU is gradually reducing the supply of permits to cut emissions, a policy that is expected to push prices higher over time.
Experts warn that carbon costs could leave some firms unable to pay their bills, adding to pressure on Germany’s already troubled industry.
The account does not specify what action any affected company or the government will take next.
German industries already under pressure from high energy costs and weak demand face rising costs for carbon permits.
Experts warn that emissions trading could push struggling companies into insolvency.
The average price of European Union carbon permits was nearly €74 per tonne last year and is now around €88.
Prices briefly exceeded €90 per tonne in early November.
The EU is gradually reducing the number of permits to cut carbon emissions, putting upward pressure on prices over time.
- Who
- Struggling German industrial companies, particularly in energy-intensive sectors such as steel, chemicals and paper, face the pressure.
- What
- Rising costs for carbon permits could push some companies into insolvency.
- When
- The article was published on 10 November 2026. Permit prices were around €88 per tonne at the time.
- Where
- Germany, under the European Union emissions trading system.
- Why
- The EU is gradually reducing the supply of permits to cut emissions, which drives prices up over time.
This story does not have two clearly opposing sides.
The average price of European carbon permits was nearly €74 per tonne.
Permit prices briefly exceeded €90 per tonne.
Permit prices were around €88 per tonne.
- Current permit price
- Around €88 per tonne
- Early November price
- More than €90 per tonne
- Average price last year
- Nearly €74 per tonne
- Industries named
- Steel, chemicals and paper
- German chancellor
- Friedrich Merz