Commission seeks views on new carbon leakage list
06 June 2013 – 30 August 2013
The European Commission, Directorate-General Climate Action, has launched a consultation on the methodology to be used in determining the list of industrial sectors and sub-sectors that are deemed to be exposed to a significant risk of carbon leakage. Stakeholders are asked for their views on issues related to the determination of the new carbon leakage list for the period 2015-2019. Read more…
The EU Emissions Trading System (ETS) was established in 2005 to promote reductions of greenhouse gas emissions in a cost-effective manner. Carbon leakage is the term used to describe the situation that may occur if businesses were to transfer their production to non-EU countries because of the costs related to compliance with EU climate policies. Non-EU countries may have less stringent controls and moving production could therefore lead to an increase in global emissions.
As of 2013, the EU ETS Directive has introduced a harmonised approach to the free allocation of emissions allowances to European industry, where sectors on the list receive a higher share compared to sectors not exposed to carbon leakage. The consultation seeks stakeholder views on the methodology for determining the list, in particular the assumptions used, which will then be subject to an Impact Assessment.
Issues covered in the consultation include indicators for the qualitative and quantitative assessment of the risk of carbon leakage, the options to be considered in the Impact Assessment, and views on the climate policies of non-EU countries. The closing date for submissions is 30 August 2013 and dedicated stakeholder meetings may be held in autumn 2013 to enable more focussed discussions.
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