FTI Intelligence | Research | Carbon | European Carbon Trading Scheme

Impact of the EU ETS Exemptions on Economic Competitiveness

Download Summary Report [PDF]
Download
EU ETS

Authors: Dora Grunwald, Meloria Meschi and Fabien Roques

Arguing that carbon costs would threaten their competitiveness, a vast majority of the manufacturing sectors, accounting for 95% of all industrial carbon emissions, receive exemptions from the EU Emission Trading System (ETS). However, competitiveness is a whole economy issue and therefore it is crucial to understand the EU-wide costs and benefits of carbon leakage exemptions. Modelling a range of carbon prices and auctioning rates, FTI-CL Energy found that phasing out special treatment for energy-intensive industries could benefit the European economy as a whole and result in a net increase in European GDP and jobs. The benefits of saved subsidies and a more efficient EU ETS outweigh the sizeable negative direct effects on the profitability of specific industrial sectors such as steel and cement.


More Info

Register

Sign up or login to access subscriptions, free research updates and other content from FTI Intelligence.

Register

Share this page