Multi-Country Sectoral Approaches: Potential for reducing Competitiveness and Leakage impacts in Austrias energy-intensive industries

The report assesses the impact of the EU ETS on three energy-intensive sectors in Austria: paper and pulp, cement, and iron and steel. It finds no compelling evidence that the EU ETS has already caused significant competitiveness or leakage issues, though future impacts are expected as free allowances decrease. The study evaluates various SAAMs, concluding that only standards and labels could significantly mitigate these risks, while recommending joint international RDD&D and 'Made under the EU ETS' labels as viable paths forward.

• There is no compelling evidence that the EU ETS has already negatively impacted the competitiveness or caused carbon leakage in the Austrian cement, steel, or paper and pulp sectors.
• Future reductions in competitiveness and leakage are expected as the EU ETS Phase 3 reduces free allowances, likely manifesting first as decreased investment in new capacity within the EU.
• For the Austrian paper and pulp sector, the potential impact of EU ETS Phase 3 carbon costs is estimated to be low, ranging from 0.3% to 1.4% of 2009 sales value, which is minor compared to other drivers like fibre costs and exchange rates.
• The Austrian cement industry is primarily exposed to trade with neighbouring countries rather than global competition, and its carbon intensity decreased from 0.668 tonnes of CO2 per tonne of cement in 2003 to 0.587 tonnes in 2009.
• The Austrian steel sector, dominated by voestalpine, remains a significant producer with trade heavily concentrated within the EU, and EU ETS impacts are considered minor compared to market trends such as the rise of Chinese production and iron ore price volatility.
• Among the evaluated SAAMs, only mandatory standards and labels are likely to have a significant impact on competitiveness and leakage, as they can restrict market access for high-carbon products.
• Technological agreements and offset mechanisms (such as JI or bilateral schemes) are unlikely to significantly reduce carbon price differentials and may have low or even negative impacts on competitiveness by transferring funds to non-EU producers.
• The report recommends two specific options for Austria to support: the promotion of a 'Made under the EU ETS' label and the pursuit of joint international RDD&D for breakthrough technologies and carbon capture and storage (CCS).

APA

Wooders, P., Keller, M., Anzinger, B., & Moerenhout, T. (2011). Multi-Country Sectoral Approaches: Potential for reducing Competitiveness and Leakage impacts in Austrias energy-intensive industries. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/wp-2-multi-country-sectoral-approaches-austria.pdf

Chicago

Wooders, Peter, Marius Keller, Barbara Anzinger, and Tom Moerenhout. Multi-Country Sectoral Approaches: Potential for reducing Competitiveness and Leakage impacts in Austrias energy-intensive industries. Climate Strategies, 2011. https://climatestrategies.org/wp-content/uploads/2014/11/wp-2-multi-country-sectoral-approaches-austria.pdf.

Wikipedia

{{cite report |last1=Wooders |first1=Peter |last2=Keller |first2=Marius |last3=Anzinger |first3=Barbara |last4=Moerenhout |first4=Tom |title=Multi-Country Sectoral Approaches: Potential for reducing Competitiveness and Leakage impacts in Austrias energy-intensive industries |publisher=Climate Strategies |date=December 2011 |url=https://climatestrategies.org/wp-content/uploads/2014/11/wp-2-multi-country-sectoral-approaches-austria.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wooders2011multicountry, author = {Wooders, Peter and Keller, Marius and Anzinger, Barbara and Moerenhout, Tom}, title = {{Multi-Country Sectoral Approaches: Potential for reducing Competitiveness and Leakage impacts in Austrias energy-intensive industries}}, institution = {Climate Strategies}, year = {2011}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2014/11/wp-2-multi-country-sectoral-approaches-austria.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }