Industry Monitor on Carbon Leakage for European Commission

During 2011, Ecofys together with partners Öko-institute and AEA are commissioned by the European Commission (DG ENTR) to extend a database on sustainability criteria for European industry with new data. At present, the main use of the database is to evaluate the EU Emission Trading Scheme. Industry can receive compensation the under the EU Emission Trading Scheme if they are exposed to carbon leakage: the risk that companies move outside Europe due to increased costs thus leaking emissions outside of the EU cap. At present, the two main quantitative criteria to determine this risk are carbon costs and the trade intensity. We investigate how trade data of countries outside the EU and on the available technologies for CO2 abatement can be added to the database, both in terms of content as in terms of ICT infrastructure. Since the database contains detailed data from the 27 EU countries, it is vital to find the right balance between adding useful information while keeping the database managable and suitable for the its purpose.

Policy design and evaluation