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Myths and realities around carbon leakage in Europe

leaking tapQuestions over how the potential risk of “carbon leakage” will be addressed in the 2030 climate and energy framework have recently gained importance. The discussions should ideally draw from the lessons learnt from the current carbon leakage provisions. This short media briefing shows that while there has been no evidence detected for the occurrence of carbon leakage so far, the European Commission has proposed to continue over-subsidising polluters at the expense of taxpayers. They have done this, even though the unpublished impact assessment accompanying the Commission’s proposal recommends cutting the number of free pollution permits to industry by around a quarter. It is up to the members of the European Parliament to ensure that European taxpayers do not lose out from this carbon leakage proposal that would unjustifiably hand €5 billion out to heavily-polluting industries. On 24 September the environment committee will vote on an objection to the Commission’s flawed approach.


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