Preliminary Carbon Leakage List published

Emissions Trading Scheme
8 May 2018

News

On 8 May 2018, the European Commission, DG CLIMA, published a Preliminary Carbon Leakage List for the EU ETS phase 4 (2021-2030), together with the framework guidance documents concerning the 2nd level carbon leakage assessments. The list is the first implementing legislation for the freshly reformed EU Emissions Trading System (ETS). The industrial sectors at the highest risk of carbon leakage will temporarily be granted free CO2 allocations, based on the updated benchmark levels.

 

A short preliminary list of 44 sectors was presented by the European Commission on 8 May. The list includes few ceramic sectors, such as wall and floor tiles, refractories, and expanded clay. Some ceramic sectors are also eligible for an additional 2nd level assessment based on qualitative criteria. Those sectors can apply for an additional assessment based on the qualitative criteria; the qualitative assessment better reflects the heterogeneity and SME-character of those industries. The quantitative indicators may not always capture their emission intensity nor the exposure to carbon leakage. According to the EC guidance, such qualitative carbon leakage assessments shall include a sector’s capacity to further reduce emissions, the market characteristics of the sector, and its profitability. A deadline of 3 months has been set for applications to be submitted to DG CLIMA.