EU auction cash could fight carbon leakage

French presidency proposes giving electro-intensive industries auctioning revenues instead of free allowances

Industries with high electricity consumption could be shielded from the negative economic consequences of carbon trading after 2013 by being directly compensated with revenues from carbon allowance auctions rather than free emission allowances, the French EU presidency has proposed.

France tabled the proposal to fellow member states last week as part of talks to agree a revision of EU rules underpinning Europe's carbon market.  The idea would amend in part a European commission proposal to fight the risks of carbon leakage by giving out free allowances.

Please sign in to access this article. To subscribe, view our subscription options, or take out a free trial.

Please enter your details

Forgotten password?

Having trouble signing in?

Contact Customer Support at
subs@endseurope.com
or call 020 8267 8120

Not a subscriber?

Take a free trial now to discover the critical insights and updates our coverage offers subscribers.