Category: Industry

Carbon Border Adjustment Mechanism (CBAM)Industry 2024
CBAM extension: Closing the emissions gap

CBAM extension: Closing the emissions gap

Free allocation has long been used to address carbon leakage under the EU ETS, but it has key limitations. It only covers emissions up to benchmark levels, fails to reward cleaner EU producers, and forfeits auction revenues that could support decarbonisation. It also creates perverse incentives by making high-emission goods artificially cheap.

Climate FinancingElectrificationIndustry 2025
Auction for industrial heat electrification: A positive step, but mind the induced emissions!

Auction for industrial heat electrification: A positive step, but mind the induced emissions!

Industrial heat electrification is a key strategy for decarbonising energy-intensive industries by replacing fossil-based heat. We welcome the European Commission’s initiative to launch an auction to electrify industrial heat, while emphasising the need for careful design to prevent unintended increases in emissions due to electricity grid dynamics. 

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