Carbon Leakage Consultation – Our response

This European Commission consultation looks at protection from Carbon Leakage in ETS Phase 4 (2021-2030), and asks how exactly free allowances should be distributed to EU industry

ETS to ESR: Too much flexibility

One-off flexibility between the ETS and ESR would increase the total EU emission budget for 2021-2030 by about 200 million tonnes

Double trouble in the ESR

To drive CO2 reductions on the ESR, policy makers should not only focus on limiting the overall size of the Safety Reserve, but also – and even more importantly – on preventing or at least limiting a second distribution round.