The EU needs a clear and comprehensive strategy that is mindful of the risks, challenges and opportunities of supporting the development and scale-up of a sufficient supply of permanent removals.
This week, the rapporteur of the European Parliament’s Environment committee (Ian Duncan) published his draft report on the EU’s carbon market reform, kicking off the legislative debate. Disappointingly, the proposal fails to address the most pressing issues that need fixing in order to make the EU ETS fit-for-purpose and in line with the Paris climate agreement.
This policy brief interprets the findings of a new study by CE Delft that shows how energy-intensive companies in 19 European countries have massively profited from their pollution because they are deemed to be at risk of “carbon leakage”. “Carbon leakage” refers to a hypothetical situation where companies transfer production to countries with weaker climate policies in order to lower their costs. Under the current EU Emissions Trading System (EU ETS) rules, industrial companies that are believed to be at risk of “carbon leakage” are awarded free pollution permits.
Paris, 12 December 2015 – Today, at the UN climate talks in Paris a global deal where all countries have agreed to take action on climate change was adopted. Carbon Market Watch comments on the long-term goal, the ambition ratcheting mechanism, provisions for the use of markets, the establishment of a new mechanism, human rights provisions, bunker emissions, pre-2020 action and the impact of the Paris treaty on EU’s climate policies.
The concept of “carbon leakage” is a major area of discussion in the legislative proposal to revise the EU’s Emissions Trading System (EU ETS) for the post-2020 period. The Commission’s proposal continues the trend of awarding free allowances, effectively representing a financial subsidy of €160 billion, to heavy emitters without providing evidence for the need of such beneficial treatment. A new Carbon Market Watch policy brief “Carbon leakage myth buster” shows how certain manufacturing companies have profited from selling the free EU ETS allowances they were given and recommends how to avoid such windfall profits in the future.
After the victory for Poland’s Law and Justice Party in the country’s recent elections, the position the country takes on the European Union Emissions Trading System (EU ETS) is likely to be one of even more defiant opposition. However, the EU ETS generates significant financial revenues for Poland. The billions of euros that the country is set to receive from the EU ETS can help the transition to a just climate friendly society in Poland, whose unprofitable coal mining sector represents an increasing burden on its finances.
Brussels, 24 August. A new study by the Stockholm Environment Institute (SEI) finds that bogus carbon offsets issued under the Kyoto Protocols’ Joint Implementation (JI) offsetting mechanism to date have increased global emissions by 600 million tonnes CO2 to date. The study come timely as countries gear up for the next round of UN talks next week in Germany; they will need to work to ensure the new Paris climate treaty is not undermined, as Kyoto was, by hot air carbon credits.
The European Commission has unveiled a list of 175 industries that will receive protection from the costs of climate change policies (“carbon leakage”) up to 2019. Surprisingly more financial support will be handed over to energy-intensive firms, despite there being no evidence for the occurrence of carbon leakage so far. Carbon Market Watch calls upon the European Parliament and Member States to reject the new list. Energy-intensive industries should not be allowed to pollute for free and therefore other measures to address carbon leakage should be developed for the post-2020 period.
Today, the European Commission released data on the number of international offsets used in 2013 by companies in the EU Emissions Trading Scheme (EU ETS). Unlike previous years, the European Commission only released aggregate information which means it is no longer possible to check the origin of the 133 million offsets that entered the EU ETS in 2013. Carbon Market Watch, Sandbag Climate Campaign and the Climate Market & Investment Association (CMIA) strongly condemn this lack in transparency as it significantly reduces civil society’s ability to scrutinize the carbon offset projects that were used.
Stay in touch and receive our monthly newsletter, campaign updates, event invites and more.
