Climate | Policy Brief
Decarbonising manufacturing firms in the European Union's Emissions Trading System
04 February 2025

Authors: RAUDE, Marie; HEINRICH, Lea; BORGHESI, Simone

Manufacturing firms in the EU face the double challenge of decarbonisation and (international) competitive pressure. Based on the key findings of the 2024 EIB investment survey and considering the economic importance of manufacturing firms in Europe, this policy brief provides an overview of emissions and output trends for manufacturing firms in the EU ETS; a description of the academic evidence and sectoral specificities of industrial innovation; a discussion on whether uncertainty is a perceived or an actual barrier to low-carbon investments; and finally, a call to address industrial firms lagging in decarbonisation.
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