Submission: Methodology to determine the list of sectors and subsectors deemed exposed to a significant risk of carbon leakage
Summary
Carbon Market Watch argues that the risk of carbon leakage within the EU ETS has decreased due to global climate progress, such as the Paris Agreement, and suggests that the long-term competitiveness gains of a low-carbon transition outweigh short-term costs.
Key insights
- Carbon Market Watch argues that the risk of carbon leakage for EU industries under the EU ETS has been reduced because of increased domestic climate actions globally and progress in international negotiations, specifically citing the ratification of the Paris Agreement since 2013.
- The organization contends that the European Commission should consider the positive innovation and long-term competitiveness benefits of climate policies, as well as the negative impacts of free allocation in competitive markets, when determining the carbon leakage list.
- The document asserts that any short-term negative effects of the EU ETS on competitiveness should be weighed against the long-term advantages of transitioning industries to low-carbon paths to avoid future costs related to stranded assets or sudden technological shifts.
Cite the original document
- APA
- Carbon Market Watch (2018). Submission: Methodology to determine the list of sectors and subsectors deemed exposed to a significant risk of carbon leakage. https://carbonmarketwatch.org/publications/submission-methodology-determine-list-sectors-subsectors-deemed-exposed-significant-risk-carbon-leakage/
- Chicago
- Carbon Market Watch. Submission: Methodology to determine the list of sectors and subsectors deemed exposed to a significant risk of carbon leakage. 2018. https://carbonmarketwatch.org/publications/submission-methodology-determine-list-sectors-subsectors-deemed-exposed-significant-risk-carbon-leakage/.
- Wikipedia
- {{cite press release |author=Carbon Market Watch |title=Submission: Methodology to determine the list of sectors and subsectors deemed exposed to a significant risk of carbon leakage |date=31 January 2018 |url=https://carbonmarketwatch.org/publications/submission-methodology-determine-list-sectors-subsectors-deemed-exposed-significant-risk-carbon-leakage/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{carbonmarketwatch2018submission, author = {{Carbon Market Watch}}, title = {{Submission: Methodology to determine the list of sectors and subsectors deemed exposed to a significant risk of carbon leakage}}, publisher = {Carbon Market Watch}, year = {2018}, month = jan, url = {https://carbonmarketwatch.org/publications/submission-methodology-determine-list-sectors-subsectors-deemed-exposed-significant-risk-carbon-leakage/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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