No Carbon Leakage in Europe as a Result of Cap and Trade Policies

A study commissioned by the European Commission has concluded that Europe’s cap-and-trade program has not caused industry to relocate to countries without greenhouse gas regulation in a process known as “carbon leakage”. In a series of sectoral “factsheets”, the report presents historical data on the structure, performance, and competitiveness of sectors (including iron and steel, chemicals, paper, cement, refined petroleum) and assess the degree to which carbon leakage may have occurred. Although the study found that no companies left Europe for unregulated territory between 2005 and 2012, the authors indicate they suspect this may change.

Read Carbon Leakage Evidence Project Report by Ecorys Consultants, Netherlands at: http://ec.europa.eu/clima/policies/ets/cap/leakage/docs/cl_evidence_factsheets_en.pdf, or read a summary at Bloomberg news at: http://www.bloomberg.com/news/2013-10-31/carbon-curbs-haven-t-spurred-production-exodus-eu-study-shows.html.

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