The recently revised EU Emissions Trading System (EU ETS) Directive sets out the rules for the system of free allocation to industry for the period 2021-2030 and empowers the European Commission to adopt a delegated act to supplement the Directive concerning the sectors and subsectors exposed to the risk of carbon leakage.

The Commission has undertaken an assessment of all relevant sectors and sub-sectors to determine their exposure to the risk of carbon leakage based on criteria set out in the ETS Directive (a quantitative assessment at NACE-4 level, Eurostat, Statistical classification of economic activities in the European Community, NACE Revision 2). The result of the assessment is presented in the Commission Notice on the preliminary Carbon Leakage List for the EU ETS for Phase 4 (2021-2030):

– 44 sectors qualify directly for the 2021-2030 Carbon Leakage List;
– 12 sectors and 16 sub-sectors/products are eligible to apply for further assessments (based on criteria set in the revised EU ETS Directive (EU) 2018/410, Article 10b paragraphs 2 and 3) that will determine whether they also qualify to be put on the Carbon Leakage List.

The Commission Notice on the preliminary carbon leakage list 2021-2030 has officially been published in the Official Journal on 8 May 2018 (2018/C 162/01).

In preparation for the Commission Notice on the preliminary Carbon Leakage List the Commission held two public consultations and a significant number of bilateral meetings with industry, Member States, NGOs and academics.

The preliminary carbon leakage list will be presented to and discussed with relevant stakeholders on 16 May 2018 in Brussels.

Source: European Commission – Climate Action