The European Commission has today sent its draft proposal for a 2015-2019 carbon leakage list to the EU Climate Change Committee.
The draft proposal includes a list of sectors and sub-sectors which are deemed to be exposed to a significant risk of carbon leakage. Installations operating in these sectors and sub-sectors will receive a higher share of greenhouse gas emission allowances free of charge in 2015 to 2019 than other sectors.
A first discussion of the list will take place in the Committee meeting on 7 May 2014 and a vote is foreseen before the summer break. After approval by the Committee, the draft Decision will undergo three months scrutiny by the European Parliament and the Council with a view to its adoption by the Commission before the end of this year.
As with the assessment of sectors and sub-sectors on the current carbon leakage list, the Commission has carried out quantitative and qualitative assessments in line with the ETS Directive. Most sectors were added to the draft list based on the quantitative criteria related to trade intensity and direct and indirect additional costs laid down in Article 10a(15) and (16) of the Directive.
For those sectors that were on the current list based on qualitative criteria, were considered to be borderline or requested an assessment based on qualitative criteria, qualitative assessments were carried out in accordance with Article 10a(17) of the Directive.
Updates on the progress of the discussions in the Climate Change Committee will be published as Regulatory Updates on this website.
The current carbon leakage list was adopted in 2009 and is valid for the five years from 2010 to 2014. According to the ETS Directive the Commission shall determine a new list every five years. A new list is therefore needed for the period 2015-2019.
In its 22 January 2014 Communication on a 2030 policy framework for climate and energy in the period from 2020 to 2030, the Commission stated that ‘it is prudent (…) to maintain the existing policy framework for those industrial sectors most at risk of carbon leakage until the end of trading in phase 3. Therefore, the Commission intends to present a draft decision on the review of the carbon leakage list to the appropriate Regulatory Committee which would maintain the current criteria and existing assumptions’.