Emission trading, the list of "carbon leakage" sectors has been lenghtened

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Carbon leakage

Commission Decision 2014/9/EU of 18 December 2013 was published in the EU Official Journal (n° L 9). It amends Commission decision 2010/2/EU establishing the list of sectors and sub-sectors deemed to be exposed to a significant risk of carbon leakage1. Under the new Decision, two sectors and four subsectors are added to the original list. Directive 2003/87/EC, as amended by Directive 2009/29/EC, establishing the Emissions Trading Scheme (ETS), authorises the European Commission each year to add sectors and subsectors to the original list if they are deemed to be exposed to a significant risk of carbon leakage provided that the sectors/subsectors concerned meet the criteria set out in the ETS Directive.

source: http://ec.europa.eu/




1 Carbon leakage is the term often used to describe the situation that may occur if, for reasons of costs related to climate policies, businesses were to transfer production to other countries which have laxer constraints on greenhouse gas emissions. This could lead to an increase in their total emissions. The risk of carbon leakage may be higher in certain energy-intensive industries. The sectors and sub-sectors which are deemed to be exposed to a significant risk of carbon leakage are those that figure in an official list which is valid for five years. This is established by the European Commission after agreement by the Member States and the European Parliament (through the so-called Comitology procedure) and following extensive consultation with stakeholders. back to top



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