Carbon Market Watch input to public consultation on draft ETS state aid guidelines
Given that there is as yet no hard evidence of carbon leakage caused by indirect costs passed through by power companies, Carbon Market Watch cannot support using taxpayer money to protect the industry from an unproven “carbon leakage risk”.
Indirect cost compensation, coupled with free allocation of emission allowances, undermines the polluter pays principle and removes market incentives for energy-intensive industries to take steps towards energy efficiency, decarbonisation and investments in cleaner production. The state aid schemes implementing these guidelines, in essence, lead to subsidies for more pollution, under the guise of tackling a problem that does not exist.
Full submission here
23 Jun 2020
The EU Emission Trading System – carbon pricing as an important tool to achieve the objectives of the Green Deal
19 Jun 2020
“Conservative” EU carbon market alone will not drive the clean industrial revolution
25 May 2020