Bulgaria Needs a Long-Term Energy Framework for Heavy Industry

Dr. Holger Klaassen, Director of “Corporate Affairs in the Field of Energy and Climate” at Aurubis AG, participated in the 17th Green and Energy Forum, held on May 19 in Sofia. The event was organized by Manager magazine and serves as an established platform for strategic dialogue between leading Bulgarian businesses, experts, and the government on the topics of the green transition and the country’s energy future.

The forum was opened by Vice Prime Minister Atanas Pekanov, who placed at the center of the discussion the need for Europe to balance three competing goals: climate neutrality, energy security, and the competitiveness of European industry. “We must think simultaneously about climate neutrality, energy security, and competitiveness, as well as energy prices that support European industry,” he stated.

This issue was specifically addressed in Dr. Holger Klaassen’s remarks. “Aurubis” produces copper—a raw material whose price is set on the London Metal Exchange and is the same for all producers worldwide. European companies pay additional fees under the Emissions Trading Scheme (ETS), while their competitors in Asia do not. The result is a structural imbalance: identical revenues, but a significantly higher cost base for European heavy industry.

Dr. Klaassen called for the introduction in Bulgaria of the so-called ICC mechanism: compensation for indirect costs under the emissions trading scheme, which Germany and several other member states are already implementing. This instrument allows energy-intensive industries to cover at least part of their increased electricity costs and thus remain competitive. He welcomed the government’s stated intention to introduce a similar scheme but emphasized that a long-term framework of at least ten years is needed, rather than a one-time three-year measure. “Bulgaria occupies a strategic position on the industrial and energy map. We want to make future investments here, but we need a reliable and long-term outlook. Copper is at the heart of decarbonization and industrial competitiveness. It is an integral part of Europe’s green transition,” he emphasized.