MEPs set to approve carbon leakage risk list

Companies in 164 European industry sectors and sub-sectors look likely to receive extra free carbon allowances from 2013 to prevent them relocating to regions with weaker carbon constraints, after most MEPs grudgingly endorsed draft EU proposals on carbon leakage on Tuesday.

"We should say yes with a stomach ache," centre-right MEP Karl-Heinz Florenz told the European Parliament's environment committee, according to a parliament source. It was the committee's first debate on a list of sectors in the EU emission trading scheme (ETS) believed to be at risk of carbon leakage. The list was drawn up by the European Commission and approved by a committee of member state experts last month.

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