Brussels, 15 March 2016: New analysis shows how industry across Europe has earned a €24 billion windfall from 2008 to 2014, under the EU Emissions Trading Scheme (EU ETS). This is the main policy used across the EU to “cost-effectively”[i] reduce CO2 emissions across industry. The findings in a report ‘Calculation of additional profits of sectors and firms from the EU ETS’, from independent environmental analysts CE Delft, adds momentum to calls from MEPs and campaigners for an overhaul of the policy ahead of the negotiations to revisit the ETS rules this year at EU level.
Tuesday 15th March, 15:00 – 17:00 European Parliament – Room 5G1 With presentations from: PETER ZAPFEL, DG CLIMA, European Commission “Innovation and carbon leakage in the EU ETS reform proposal” TOMAS WYNS, Vrije Universiteit Brussel “Post 2020 industrial and innovation policy” FEMKE DE JONG, Carbon Market Watch “Carbon leakage” and industry ambition in a post-Paris world …
Read more “European Parliament Event: RE-PLUMBING THE EU ETS: low-carbon innovation and carbon leakage in a post-Paris world”
The concept of “carbon leakage” is a major area of discussion in the legislative proposal to revise the EU’s Emissions Trading System (EU ETS) for the post-2020 period. The Commission’s proposal continues the trend of awarding free allowances, effectively representing a financial subsidy of €160 billion, to heavy emitters without providing evidence for the need of such beneficial treatment. A new Carbon Market Watch policy briefing “Carbon leakage myth buster” brings the ongoing discussions on carbon leakage back to the facts.
Climate change is happening. Global average temperatures have already increased by 0.8ºC above preindustrial levels. Current trends imply a warming of 2.9-5.2ºC by the end of the century, which, even at the low end of the range, will cause great impacts on the planet and threaten many areas of human life, including health, food security, economic growth, societal change, and drinking water. 2015 is a key year for global efforts to combat climate change and keep warming under 2ºC, the warming limit agreed in the UN Framework Convention on Climate Change negotiations.
On 24 September the European Parliament’s Environment committee, voted down an objection to the European Commission’s new carbon leakage list, 34 to 30. The objection was lodged by Green MEP Bas Eickhout and argued that the proposed €30 per tonne carbon price, used in determining which sectors are placed on the list, was grossly inflated. …
Read more “Carbon leakage: a blank cheque to industry”
Questions 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.
On 23 and 24 October 2014, EU’s heads of state will determine Europe’s future action to avoid dangerous global temperature rises. At this important date, they will decide whether to follow the European Commission’s proposal to reduce 40% domestic greenhouse gas (GHG) emission reductions below 1990 levels by 2030. The proposed target of 40% GHG …
Read more “Carbon Market Watch reaction to leaked 2030 Council Conclusions”
In early September, the council conclusions on the 2030 climate and energy framework were leaked. Worryingly, the draft text stated that the current practice of giving free pollution permits to heavy emitters needs to be maintained while “dynamically” allocating these permits based on actual production levels. A rebuttal by Carbon Market Watch shows that this approach could result in EU taxpayers paying industry an extra €130 billion worth of free emission allowances, while the public have never been presented proof that carbon leakage actually exists.
“Dynamic allocation” – an industry model for windfall profits from free emission allowances at the expense of taxpayers The EU Emission Trading System (EU ETS) covers just over 40% of the EU’s greenhouse gas emissions from the industry and power sector. After each year, companies participating in the system must surrender enough allowances to cover …
Read more “Carbon Leakage Rebuttal”
Carbon leakage is the situation in which, as a result of stringent climate policies, companies move their production abroad to countries with less ambitious climate measures, which can lead to a rise in global greenhouse gas emissions. In Europe, the EU Emission Trading System (EU ETS) covers the greenhouse gas emissions from the industry and …
Read more “Carbon Leakage”
