Oslo, Norway – On July 9, 2025, Elkem ASA learned that the Norwegian Ministry of Climate and Environment has found that Norwegian silicon and manganese producers were treated unfairly compared to their EU counterparts in the distribution of free emission allowances under the EU Emissions Trading System (EU ETS). This matter is now set for reevaluation by the Norwegian Environment Agency.
The EU ETS grants free allowances to industries at high risk of carbon leakage. Carbon leakage happens when companies move their production to countries with less strict environmental policies, leading to a potential rise in global emissions. For the period of 2021-2025, Norwegian companies, including Elkem, received only about 72% of their historical emissions in allowances, while EU firms received around 94%.
Inge A. Grubben-Strømnes, Elkem’s Senior Vice President, pointed out that this imbalance has put Norwegian metal companies at a significant disadvantage. “Fair and equal treatment in allowance allocations is crucial for maintaining a level playing field,” he remarked.
According to Elkem’s estimates, they could gain about 1.3 million additional free allowance credits for the period under review. This would significantly ease their financial burden and help them stay competitive.
Current Trends and Perspectives
A recent survey by the International Energy Agency (IEA) found that nearly 40% of manufacturers are grappling with the pressure of higher carbon costs. Many are calling for a more equitable approach to emissions trading. There’s a growing conversation about how different regions can create a more balanced system that doesn’t disadvantage specific countries or industries. Social media trends show a lot of discussions around carbon regulations and fairness, with hashtags like #CarbonLeakage and #FairTrade gaining traction.
In conclusion, the call for fairness in emissions trading reflects broader concerns about environmental policy and economic sustainability. With industries under pressure to meet climate goals, ensuring that no one gets left behind is becoming increasingly important.
For further insights on this topic, you may check the Norwegian Ministry of Climate and Environment’s official pages here.
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