EU ETS reform raises risk of investment leakage

Reacting to todays’ publication of the European Commissions’ Emission Trading Scheme (ETS) post 2020 reform proposal, Director General Markus J. Beyrer said: 'The Commission’s proposal is failing to safeguard the competitiveness of European industries. It does not match with the objective of keeping a strong and competitive industrial base in Europe. By unnecessarily reducing the volume of free CO2 emission allowances so drastically, it raises the risk of investment leakage, exposing our industries to unfair competition from countries without comparable climate efforts. We nonetheless acknowledge the efforts to increase the threshold for the innovation fund which will support innovative low-carbon technologies and processes from industry.'