EU Parliament Environment Committee Rejects Objection Against Commission’s Proposal for a Carbon Leakage List

The European Parliament’s Environment Committee (ENVI) yesterday rejected an objection against the “carbon leakage” list proposed by the European Commission in May 2014 for the period 2015 to 2019.

Industries covered by the list receive free emission allowances which they can use to fulfill their obligation under the EU Emissions Trading System (EU ETS) to submit allowances to cover their emissions. The carbon leakage list shall prevent the transfer of production to other countries which have laxer constraints on greenhouse gas emissions. The sectors and sub-sectors covered by the list are established by the European Commission after agreement by the Member States and the European Parliament (through the so-called Comitology procedure) and following extensive consultation with stakeholders. The criteria used to determine the new list are the same as those used to determine the current list (for more information, please see here). Those objecting to the Commission’s proposal argued that the Commission’s methodology to identify sectors eligible for the allocation of free allowances was based on a carbon price of EUR 30 per allowance, a price far too high that puts sectors on the list that do not belong there.

Source: European ParliamentEEP Group

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