Lyondell Basell CEO Peter Vanacker says the EU emissions trading scheme makes it nearly impossible to justify decarbonisation investments, stating the company would have to spend €600mn between 2031 and 2035 to retain just €120mn in free allowances. The comments came as the EU debates revisions to its carbon market, with European Parliament negotiator Peter Liese proposing to lower upfront free allowances from 80 to 75 percent. Vanacker argues the current system places the financial risk of decarbonisation solely on producers, questioning where the business case exists for shareholders.

Meanwhile, Turkey's trade minister Ömer Bolat warns Ankara will retaliate if the EU uses "Made in Europe" preferences to curb trade access, claiming the plans violate the shared customs union. Asset manager Vanguard also flags France as a "long-term degrading credit" whose sovereign spreads could widen. In contrast, Vanacker points to Lyondell Basell's €40mn investment in a chemical recycling plant in Wesseling, Germany, as proof that clear market demands create predictable business cases.

He cites the EU's 10 percent recycled material target for 2030 as evidence that regulation can drive investment when predictability exists.