The French EU presidency has tabled proposals designed to ensure that a plan to shield industry sectors from carbon leakage risks in the EU carbon trading scheme does not deplete a "solidarity" fund channelling cash to poorer member states. The proposals were presented to governments on Friday as part of talks to revise the scheme (ETS).
Member states want some energy-intensive industries to get free carbon allowances so as to maintain international competitiveness, but the more allowances are distributed for free, the fewer can be auctioned and the lower will be the auctioning revenues, a proportion of which are to be put into a "solidarity" fund to help poorer member states finance energy modernisation.
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