BASF warns EU carbon plans risk industrial decline

BASF, the German chemical giant, has issued a stark warning that the European Union’s carbon reduction plans could accelerate the region’s industrial decline. The company’s caution, reported by the Financial Times, comes amid growing concerns over the competitiveness of European industry as Brussels pushes ahead with ambitious climate targets. BASF’s warning highlights the tension between environmental goals and the economic realities facing manufacturers, who argue that high energy costs and regulatory burdens are driving production overseas. The statement from one of Europe’s largest industrial firms adds to a chorus of alarm from the sector, which fears that without significant policy adjustments, the EU’s green transition may come at the cost of deindustrialisation. The implications for the UK, which has its own net-zero targets, are significant: British industry faces similar pressures as it navigates post-Brexit trade barriers and domestic carbon pricing.