The Emission Trading Scheme post-2020 carbon leakage provisions

Responding to the European Commission’s request for stakeholder submissions on the post-2020 carbon leakage provisions, Sandbag made clear that the current rules (free allocation benchmarked against historical production for a fixed baseline year) is failing to address the risk of carbon leakage, and may in fact be encouraging ‘offshoring’ and reduced industrial production. We encouraged changes to the provisions, including using latest available production data, to prevent (and possibly reverse) any future carbon leakage.