S&Ds criticise proposed carbon leakage list as unrealistic

carbon leakage list - ETS

The current list of sectors to be protected from unfair competition in the EU Emissions Trading System (ETS) will expire by the end of the year and a new list must be in place for the period 2015-2020.

The Group of the Socialists and Democrats in the European Parliament agrees with the general idea that a carbon leakage list* is needed, but it must be done in a transparent way and based on realistic data. However, the list proposed by the Commission falls short of what is needed, which is why the S&D Group voted today in favour of a resolution asking the Commission to put forward a more realistic and transparent proposal.

S&D spokesperson on climate, MEP Matthias Groote, said:

"Almost all industrial sectors are currently an exception to the general system, and this undermines the ETS. The list must be realistic. The Commission’s impact assessment clearly states that the carbon price until 2020 will not be higher than 16.5 euros per ton CO2, and yet the proposal voted on today is based on 30 euros per ton of CO2. The Commission contradicts itself!

"Unfortunately the list adopted today with a right-wing majority is not fair to the industries which are investing in innovation and sustainable solutions. At the end of the day it is citizens who are paying the costs for over allocation of allowances.

"Furthermore, the whole process in making the list was not transparent and too slow. The impact assessment should be made public. The EU is liable towards the industry – but first and foremost it is liable towards the European citizens."

Note for editors

*“Carbon leakage” refers to the risk of businesses transfering production to third countries with lower constraints on greenhouse gas emissions. To ensure the competitiveness of industries covered by the ETS, production from sectors deemed to be exposed to a significant risk of 'carbon leakage' receive a higher share of free allowances.