Cogeneration is widely used in the Italian ceramic district: there are 35 active plants across approximately 200 production sites, covering up to 50% of the sector’s energy needs and helping reduce both costs and CO₂ emissions. However, despite its environmental and economic benefits, the ETS – Emissions Trading System – paradoxically penalizes those who adopt this efficient technology. Some cogeneration plants are actually seen as “worse” under current regulations due to distorted benchmark rules. Concerns are growing with the upcoming ETS 2 in 2027, which could further restrict the use of cogeneration through new carbon taxes.