EU: Energy Visions – Plugging the Carbon Leak: Emissions and Competitiveness

The EU has some of the most ambitious targets for greenhouse gas reductions in the developed world. But cutting emissions poses challenges for energy-intensive industries. The cost of pollution rights can affect a company’s global competitiveness and drive it to shift production to regions with less strict emissions limits – a trend known as carbon leakage.

Following an intense debate between legislators, regulators, industry and environmental campaigners about the risk of carbon leakage, the Commission unveiled plans in July to reduce the amount of free emissions allowances so that industry will have to pay more for the right to emit greenhouse gases. The Commission wants to increase the financial incentive for companies to lower carbon emissions as part of the move to a low-carbon economy. Part of the proceeds from selling emissions rights will be available to finance innovation to reduce carbon emissions from industrial processes.

At this event, senior policymakers and industry representatives will debate how much of a threat carbon leakage presents to the competitiveness of EU-based industries and the role innovation can play in cutting emissions.

Read more: Energy Visions – Plugging the Carbon Leak: Emissions and Competitiveness – POLITICO