MEP Erik Kaliňák (NI) has asked the European Commission to assess the economic impact of reducing free emission allowances for energy-intensive industries, warning of potential job losses and carbon leakage. In a parliamentary question submitted on 4 June 2026, Kaliňák cited opposition from six member states, including Slovakia, to further cuts, arguing they risk deindustrialisation and relocation of production outside the EU.
The question, tabled by the non-attached Slovak MEP, seeks concrete data on expected negative impacts such as rising energy prices, loss of competitiveness, and declining investment in energy-intensive sectors. Kaliňák also asks whether the Commission has evaluated the risk of plant closures and production shifts to countries with lower environmental standards, and requests estimates of the scale of such carbon leakage. Finally, he calls for specific measures to protect European industry and prevent job relocations.
The Commission is expected to respond within approximately six weeks. The reply will signal whether the executive shares the concerns raised by the six member states and whether it plans adjustments to the Emissions Trading System (ETS) framework to mitigate economic disruption. The question highlights a growing tension between climate ambition and industrial competitiveness, with energy-intensive sectors—such as steel, chemicals, and cement—facing higher costs under the EU's tightening carbon market.