EU to update carbon leakage protections

EU leaders have agreed to change climate law provisions for the period after 2020 in line with energy-intensive industries’ concerns

EU leaders have agreed to change climate law provisions for the period after 2020 in line with energy-intensive industries’ concerns.

An agreement struck in Brussels on Thursday night commits the EU to tackling the indirect costs of emissions trading to industry through electricity suppliers passing on their CO2 allowance costs in power prices.

This should be done “so as to ensure a level playing field”, the agreement states. At present, member states have the option of compensating industry at risk of carbon leakage for indirect CO2 costs but most have not done so, while those that have done so have made widely differing amounts of money available.

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