Industrial alarm: CO2 costs could exceed the annual EBITDA of some European manufacturers in a decade

Industrial groups across Europe have previously indicated that electrification and other process-level transitions remain difficult to justify on a purely commercial basis. Carbon pricing under the EU and UK emissions trading schemes (ETS) could impose cumulative costs higher than the annual profits of some energy-intensive industrial companies over the next ten years, according to a new analysis of UK and EU metals companies.
“The carbon item is no longer a distant regulatory detail,” said Giuseppe Amitrano, CEO of Wield More. “For some manufacturers, it can become a cash cost high enough to redefine margins, pricing strategy and credit risk within a single planning cycle.”
The research was conducted by Wield More Investment Management, an FCA-authorized firm based in London, which develops data-driven tools to quantify and manage transition risks and physical risks for institutional investors and industrial companies.

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