Carbon pricing and its future role for energy-intensive industries

The synthesis paper to our project on ‘International Industry Competitiveness, Carbon Leakage, and Approaches to Carbon Pricing’ is now available for online review. We would be very interested in receiving your comments through the website by 15 October 2011.

This paper summarises the state of research undertaken by Climate Strategies on carbon leakage and competitiveness, looking into the industries' ability to pass through carbon costs and the extent to which carbon pricing might affect future investment decisions. This sector-by-sector synthesis is conducted for steel, cement, aluminium, chemicals, and pulp and paper.

• Which international trends determine demand, costs, and a company's choice to locate its capacities? 
• What are the trade-offs between the carbon price and other costs of an industry? 
• What kind of policy is needed to facilitate investment in clean technology and to reduce investment risk?