Tackling Leakage in a world of unequal carbon prices

Carbon leakage refers to the possibility that unilateral carbon pricing could lead trade-exposed, energy-intensive industries to replace domestic production by imports, or to relocate production to foreign countries. The issue was at the heart of the policy process that resulted in the EU Emissions Trading Directive of 2008 and most recently it has impacted upon the US legislative process for a planned national cap and trade system. Additionally, failure to find a suitable resolution for the problem of carbon leakage will likely affect the potential to create links between different national emissions trading systems in the future.

The synthesis report highlights that while the EU ETS Directive foresees free allocation of emission rights for ‘sectors at risk of carbon leakage’ there are many issues with this approach and much attention has been paid in the research to alternative remedies, including the adjustment of carbon costs at the border.

Reports

International Industry Competitiveness, Carbon Leakage, and Approaches to Carbon Pricing - Final Report
28 Nov 2012. Author: Susanne Droege

The effects of carbon prices and anti-leakage policies on selected industrial sectors - Final Report
11 Oct 2012. Author: Pedro Linares & Alberto Santamaría - Institute for Technology Research, Comillas Pontifical University

Modelling the Impact of Policy Interventions on Carbon Leakage - Assessment with the E3MG Model - Final Report
15 Jun 2012. Author: Hector Pollitt, Philip Summerton & Chris Thoung (Cambridge Econometrics)

Implementation of an emission trading scheme in Japan: Some food for thought - Working Paper
31 Oct 2011. Author: Stéphanie Monjon (CIRED)

Use of Border Adjustment Measures - a cement sector perspective - Working Paper
26 Sep 2011. Author: Gregory Cook

Investment, Carbon Pricing and Leakage - a cement sector perspective - Working Paper
26 Sep 2011. Author: Gregory Cook

Can China afford to commit to effective carbon pricing policies? - Working Paper
26 Aug 2011. Author: Xin WANG, Ji Feng LI, Ya Xiong ZHANG

Tackling Leakage in a World of Unequal Carbon Prices - A study for the Greens/EFA Group - Final Report
20 May 2010. Author: Susanne Droege and Simone Cooper

Tackling Leakage in a World of Unequal Carbon Prices - Final Report
05 Oct 2009. Author: Susanne Droege

Tackling Leakage in a World of Unequal Carbon Prices - Executive Summary
05 Oct 2009. Author: Susanne Droege

Carbon Leakage and the EU ETS
05 Oct 2009. Author: Susanne Droege

Climate change and the cement industry: assessing emissions and policy responses to carbon prices - Working Paper
23 Sep 2009. Author: Greg Cook

Addressing competitiveness and leakage concerns in climate policy: An analysis of border adjustment measures in the US and the EU - Working Paper
25 Aug 2009. Author: van Asselt, H., Brewer, T.

Border Adjustments in Japanese Climate Policy - Working Paper
18 Mar 2009. Author: Yukari TAKAMURA and Yasuko KAMEYAMA

Addressing leakage in the EU ETS: Results from the CASE II model - Working Paper
16 Mar 2009. Author: Stephanie Monjon and Philippe Quirion

Addressing Leakage Competitiveness in US Climate Policy: Issues Concerning Border Adjustment Measures - Working Paper
05 Mar 2009. Author: Harro van Asselt, Thomas Brewer, Michael Mehling

Tackling Leakage in a World of Unequal Carbon Prices - Workshop Presentation
25 Feb 2009. Author: Droege, S.

Carbon pricing effects on cost structures and trade flows of energy intensive industries - Final Workshop Presentation
25 Feb 2009. Author: Mohr, L., Graichen, V., Schumacher, K.

Setting Benchmarks for Free Allowance Allocation - Final Workshop Presentation
25 Feb 2009. Author: Matthes, F.

The EU ETS Directive - Workshop Presentation - Final Report
25 Feb 2009. Author: Schleicher, S.P.

Addressing leakage in the EU ETS: results from the CASE II model -Final Workshop Presentation
25 Feb 2009. Author: Monjon, S. & Quirion, P

Border adjustments: Implications of design options - Final Workshop Presentation
25 Feb 2009. Author: Quirion, P & Monjon, S.

International cooperation to limit the use of border adjusmtent - Workshop Presentation - Final Report
25 Feb 2009. Author: Neuhoff, K.

Border Adjustment in Japanese Climate Policy - Final Workshop Presentation
25 Feb 2009. Author: Takamura, Y. & Kameyama, Y.

"Climate Tariffs" and the credibility of the EU climate and energy package - Working Paper
25 Feb 2009. Author: Susanne Droege

China-EU Trade and the Role of Export Taxes - Workshop Presentation - Final Report
20 Feb 2009. Author: Voituriez, T. & Wang, X.

Workshop Agenda - Final Report
16 Feb 2009. Author: Susanne Droege, SWP

Carbon Leakage from the EU Emission Trading Scheme - Working Paper
01 Feb 2009. Author: Jean-Pierre possard

Trade flows and cost structure analysis for exposed industries in the EU-27 - Working Paper
23 Jan 2009. Author: Lennart Mohr, Verena Graichen, Dr. Katja Schumacher

Can Unilateral Trade Measures Significantly Reduce Leakage and Competitiveness Pressures on EU-ETS-Constrained Industries? The case of China export taxes and VAT rebates - Working Paper
21 Jan 2009. Author: Xin Wang, Tancrede Voituriez

Leakage Maze - Final Report
08 Jan 2009. Author: Susanne Droege

Estimation of Carbon Costs in the Chemical Sector - Final Report
03 Dec 2008. Author: Marscheider-Weidemann, F. & Neuhoff, K.

International cooperation to limit use of border adjustment - workshop summary
06 Nov 2008. Author: Karsten Neuhoff & Roland Ismer

"Tackling Leakage" - Final Report
12 Feb 2008. Author: Susanne Droege

Tackling Leakage
04 Feb 2008. Author: Workshop presentations

Project Outline: Tackling Leakage - Final Report
22 Jan 2008. Author: Susanne Droege

Can Sectoral Agreements and Output Based Allocation Address Leakage? - Final Report
06 Jul 2007. Author: Michael Colombier and Karsten Neuhoff

Grandfathering versus OBA: implications for the EU cement sector - Final Report
09 May 2007. Author: Neil Walker