Tyrol business chamber says climate law could hurt competitiveness

Austria’s proposed climate law could weaken business competitiveness by imposing stricter requirements than the European Union’s rules, the Tyrol Chamber of Commerce said on Wednesday, according to ORF. Chamber President Barbara Thaler called the stricter national standards “gold-plating” but said climate protection itself was not in question.

Thaler said businesses in Austria compete for the same contracts as companies in neighbouring countries. Additional national requirements within the EU single market could put Austrian firms at a disadvantage, she argued. She also said the law’s effects on jobs and investment were not being measured as closely as its emissions reductions.

The EU target is climate neutrality by 2050, while Austria’s draft law sets a 2040 deadline. The chamber plans to discuss the proposal with the Austrian Chamber of Agriculture and decision-makers, including members of parliament. Thaler said bringing the deadline forward by 10 years would benefit neither Austria, the EU nor the climate.

The chamber is also concerned about interim sector targets. Stefan Garbislander, its head of economic policy and sustainability, said the first climate roadmap is due by the end of 2027. He said around 2.4 million tonnes of carbon dioxide would need to be cut by 2026 to meet the first target, and the chamber suspected that would not happen. If targets are missed, the chamber fears repeated emergency measures that consumers would ultimately have to implement.

Thaler cited a study by Economica commissioned by the chamber, which estimated that diesel prices in 2035 could be 95 cents higher than under implementation of the EU’s RED III directive.

Thaler and Garbislander said stricter national rules would bring little benefit for a small country such as Austria. They said the draft did include two areas that could benefit businesses: the circular economy and climate adaptation.

The law, submitted for review by the governing parties ÖVP, SPÖ and NEOS in late August, covers sectors outside the EU emissions trading system: transport, buildings, small industry and trades, agriculture, and waste. Critics have also said the law binds the federal government without creating an enforceable legal right, meaning it could not be challenged in court.