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Green / EFA group report questions carbon leakage criteria

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A report commissioned by the Greens/EFA group in the European Parliament claims that only 13 industrial sectors in Europe are “truly” at risk of carbon leakage, and that the criteria for deciding which industry sectors should qualify as being at risk of carbon leakage is questionable. The study claims that the European Commission’s single trade intensity criteria has resulted in a list of sectors that is too long, and does not reflect the leakage potential at a sectoral level. Using the Emission Trading Directive criteria, 164 sectors are considered to be at risk of carbon leakage. However, the criteria laid down in the Directive are deemed essential by all Energy Intensive Industries, including CEMBUREAU.

The cement industry qualifies as a sector vulnerable to carbon leakage, not on the basis of trade intensity, but because of our increased cost directly and indirectly induced by the Emission Trading Scheme (ETSi) of 45.5% of GVA in excess of the 30% criterion in the ETDi.

The report on carbon leakage can be found here:

http://www.stopclimatechange.net/fileadmin/bali/user_upload/docs/CS_greens_group_final_May_19.pdf