Support to the Commission for the determination of the Carbon Leakage List post-2020 under the EU Emission Trading System

The EU emissions trading scheme (EU-ETS) has created a union-wide carbon market for both electricity generation installations and industrial facilities according to the ‘cap and trade’ principle. Since its start in 2005; avoiding the relocation of industrial activities to countries without comparable climate reduction policies – carbon leakage - was a major concern and specific measures were implemented to address this potential problem. The risk of carbon leakage differs from one industrial sector to the other. To assess the risk of carbon leakage the Commission undertakes an assessment based on the criteria established in the EU ETS directive to determine the so-called carbon leakage list. The carbon leakage list is drafted every five years. In this contract the consortium assists the Commission in the process of determination of the carbon leakage list that will be valid for the fourth trading period of the EU ETS, by providing support for data collection, data processing and analysis as necessary.