EC publishes draft carbon leakage list

On 5 May 2014 the European Commission sent its draft proposal for a 2015-2019 carbon leakage list to the EU Climate Change Committee. The draft proposal includes a list of sectors and sub-sectors which are deemed to be exposed to a significant risk of carbon leakage.

The draft list also includes the tile and brick sector, as a result of an updated qualitative assessment. According to the revised ETS Directive, the preliminary free allocation for installations from carbon leakage sectors will remain at 100% of the benchmark level for the whole 2015-2019 period, while for sectors that are not in the carbon leakage list it will start at 65.71% of the benchmark level in 2015 and be reduced to 37.14% in 2019. In both cases, the cross-sectoral correction factor will be applied to calculate the final free allocation.

The vote by the Climate Change Committee is foreseen before the summer break. After that approval, the draft Decision will undergo three months' scrutiny by the European Parliament and the Council with a view to its adoption by the Commission before the end of this year.

All relevant information is available on the EC website