• ETS I, ETS II, and CBAM can be a driving force for Bulgaria’s industrial modernization—but only with a stable, predictable regulatory framework, targeted spending of carbon revenues, and a continuous, structured dialogue between institutions, businesses, and trade unions

The Ministry of Environment and Water has prepared a consultation paper “Energy Transition, Carbon Mechanisms, and Bulgaria’s Economic Transition,” which examines the impact of the Emissions Trading Schemes (ETS I and II) and the Carbon Border Adjustment Mechanism (CBAM) on the competitiveness of Bulgarian industry and the economy.

The document was prepared following extensive consultations conducted by the Ministry of Environment and Water with thirteen leading representative organizations from industry, business, and social partners. Participants included leaders and representatives of the Bulgarian Association of the Metallurgical Industry, the Bulgarian Cement Industry Association, the Association of Industrial Capital in Bulgaria, the Confederation of Employers and Industrialists in Bulgaria, the Bulgarian Federation of Industrial Energy Consumers, the Economic and Social Council of Bulgaria, the Association of Bulgarian Airlines, the Free Energy Market Association, the Trakia Economic Zone, the Association of Agricultural Producers in Bulgaria, the Bulgarian Association for Insulation in Construction, the Bulgarian Chamber of Commerce, and the Chamber of Builders in Bulgaria.

The inclusion of conclusions in the document from this representative list of participants sends a clear political signal that such a discussion is urgently needed. The significance of the topic makes it a strategic issue for the national economy. The country’s frequently changing and largely inconsistent official positions, which serve short-term political goals without providing the stable regulatory environment necessary for the business, pose equal challenges both to those working in the sectors covered by ETS I and II and to the administrative bodies responsible for oversight.

Participants have been united in calling for public support and the will to transform carbon regulations from an administrative challenge into a strategic asset. “Bulgaria today should not simply adapt to European requirements, but actively shape its new industrial profile through intelligent management of its revenues from ETS I and II and a strategic effort to reduce the country’s exposure to carbon dependency,” the document states.

It presents the conclusions of the discussion, which summarize the participants’ main views on the eight possible directions of the upcoming July ETS reform, outline the need for institutional strengthening to implement the CBAM, and formulate concrete measures at both the European and national levels.

“ETS I, ETS II, and CBAM can be a driving force for Bulgaria’s industrial modernization—but only with a stable, predictable regulatory framework, targeted spending of carbon revenues, and a constant, structured dialogue between institutions, the business, and trade unions,” reads the message of the new consultative document.