Brussels, 10 November 2026. The European textile industry supports the EU’s climate neutrality goals but warns that the revision of the EU Emissions Trading System (ETS) must reflect industrial realities. In its updated position paper, EURATEX outlines five priorities to ensure that decarbonisation strengthens, rather than undermines, European manufacturing.
Europe’s textile industry faces growing pressure from high energy prices, regulatory complexity and international competition. While the sector remains committed to the green transition, companies need affordable energy, adequate infrastructure and commercially viable technologies to reduce emissions without losing competitiveness.
The upcoming EU ETS revision offers an opportunity to better align climate policy with the conditions needed for industrial transformation. EURATEX argues that emissions reductions must result from successful decarbonisation, not from the relocation of production and investment outside Europe.
Five priorities for a more effective EU ETS
In its position paper, EURATEX identifies five key recommendations:
1. Link emission reduction targets to industrial realities
The ETS trajectory should reflect the availability of affordable low-carbon energy, adequate electricity infrastructure and viable technologies. EURATEX proposes an automatic review mechanism to adjust the pace of reductions when these conditions are not met.
2. Maintain effective protection against carbon leakage
Free emission allowances should continue to protect European manufacturers from competitors operating under less stringent carbon pricing rules. EURATEX calls for removing additional investment conditions that limit companies’ flexibility to finance their own decarbonisation pathways.
3. Establish realistic benchmarks
ETS benchmarks must reflect achievable industrial performance and ensure sufficient free allowances. Companies should not be penalised for infrastructure or technological limitations beyond their control.
4. Align emission reductions with technological progress
Industrial innovation takes time. EURATEX proposes a more gradual reduction trajectory between 2030 and 2035, followed by faster reductions between 2035 and 2040, as low-carbon technologies become more widely available. This would maintain overall climate ambition while supporting industrial investment.
5. Introduce European compensation for indirect carbon costs
Energy-intensive textile processes face significant electricity costs. EURATEX calls for an EU-wide compensation framework, financed through ETS revenues, to ensure fair competition across Member States and better recognise the specific needs of textile manufacturers.
Climate neutrality and competitiveness must go hand in hand
The ETS revision will influence industrial investment decisions for the next decade. EURATEX therefore calls for a thorough impact assessment, including sector-specific consequences, before introducing further changes.
Europe cannot achieve climate neutrality by moving its industrial production and emissions outside its borders. A successful ETS must enable companies to invest, innovate and decarbonise while maintaining a strong European manufacturing base.
Read the full EURATEX position paper on the EU Emissions Trading System revision.
Picture @ Image by wirestock on Magnific