Like other manufacturing sectors and many national governments, the European pulp and paper industry has called on the European Commission to maintain the current EU Emissions Trading System (ETS) benchmark values for the 2026-2030 period. It could otherwise lose an annual €1 billion in decarbonisation investments. The European pulp and paper industry has a strategic advantage in supporting the EU’s objective of climate neutrality by 2050. In 2023, the EU bioeconomy was valued at €2.7 trillion, accounting for 5% of the EU’s GDP, and is expected to grow rapidly, presenting a €6.6 trillion opportunity globally, which will capitalise on divestments from fossil fuels but also materials. It is a rare industry where the EU still has a competitive advantage. But a recent EU Commission proposal to adjust its key climate policy the EU ETS, discussed today at the EU Council, fails to consider this potential.