Carbon Leakage: A Blank Cheque to Industry

The document argues that the European Parliament's decision to uphold the European Commission's carbon leakage list, using a €30 per tonne carbon price, leads to an over-allocation of free emission permits. It claims this results in a loss of approximately €5 billion in taxpayer revenue over five years and provides windfall profits to polluters, despite a lack of evidence for actual carbon leakage.

• A vote by the European Parliament’s Environment committee on 24 September rejected an objection to the European Commission’s carbon leakage list, which is estimated to cost EU taxpayers approximately €5 billion in lost revenues over the following five years.
• The author asserts that over 97% of industrial emissions currently receive free pollution permits under the EU ETS, despite a lack of evidence supporting the occurrence of carbon leakage.
• A leaked impact assessment from the European Commission suggested that using a carbon price of €10 or €16.5, rather than €30, would align better with forecasts and could have reduced free allowances to industry by up to two-thirds, removing sectors such as cement from the list.

APA

CMW (2014). Carbon Leakage: A Blank Cheque to Industry. Carbon Market Watch. https://carbonmarketwatch.org/2014/10/07/carbon-leakage-a-blank-cheque-to-industry/

Chicago

CMW. Carbon Leakage: A Blank Cheque to Industry. Carbon Market Watch, 2014. https://carbonmarketwatch.org/2014/10/07/carbon-leakage-a-blank-cheque-to-industry/.

Wikipedia

{{cite press release |last1=CMW |title=Carbon Leakage: A Blank Cheque to Industry |publisher=Carbon Market Watch |date=7 October 2014 |url=https://carbonmarketwatch.org/2014/10/07/carbon-leakage-a-blank-cheque-to-industry/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{cmw2014carbon, author = {CMW}, title = {{Carbon Leakage: A Blank Cheque to Industry}}, publisher = {Carbon Market Watch}, year = {2014}, month = oct, url = {https://carbonmarketwatch.org/2014/10/07/carbon-leakage-a-blank-cheque-to-industry/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }