Abstract
The European Union's climate policy is currently under debate. In a recent document published in January 2014, the European Commission provides an initial assessment of the current situation, and suggests possible reforms to be implemented by 2020-2030. A number of European think tanks, such as CEPS and Climate Strategies, are mobilizing representatives from government, industry and academia to put forward proposals..
The aim of this presentation is to contribute to this debate by addressing the following questions:
- Should the European carbon market take into account the competitiveness issues associated with the disparity of carbon prices worldwide?
- Is the allocation of free allowances to certain industries an appropriate response to limiting carbon leakage?
- What assessment can be made of the policies actually implemented in the EU-ETS in this respect?
- More generally, what recommendations can be made to use free allocations in the EU-ETS as leverage in the COP 21 negotiations?
