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
25 May 2020
Webinar: Cleaning Up Big Polluters – How to ensure that the EU Green Deal delivers?
29 Apr 2020
How the EU carbon market’s lesser-known cousin could help drive industrial transformation
10 Apr 2020
Carbon Market Watch’s feedback on the inception impact assessment on the Carbon Border Adjustment Mechanism
5 Apr 2020