News Digest Item
07 Sep 2016

“Carbon Leakage”

Centre for European Policy

The number of free emissions allowances allocated to industrial companies competing at a global level under the EU Emissions Trading System (ETS) should not be rigidly restricted, because too few allocations may result in carbon leakage, according to a study by neoliberal think tank Centre for European Policy (cep). “Carbon leakage gives rise to economic costs in the EU in the form of lower industrial output and the loss of jobs,” says the study.

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