Carbon Pricing in Europe: The Economic Framework for Compensation

In case you missed our recent webinar with Fabien Roques about carbon pricing, you can follow the full recording of the session here and see the presentation here.

Under the 2030 Climate and Energy Framework, the European Union has committed to EU-wide targets for the period 2021-2030 in the context of a long-term strategy to achieve a climate-neutral economy by 2050. Among these targets is a 40% cut in greenhouse gas emissions. The EU emissions trading system (EU ETS) is the cornerstone of the EU’s policy to combat climate change. It is the world’s first major carbon market and remains it’s largest. To safeguard the competitiveness of industries covered by the EU ETS, the European Commission has developed a framework to provide compensation for the sectors and sub-sectors deemed to be exposed to a risk of carbon leakage.

Carbon Leakage is defined as the situation that may occur when businesses trying to escape strict climate policies in their country transfer production to other countries with laxer emission constraints. This may cause an increase in carbon dioxide total emissions.

In this webinar, Fabien Roques reviewed the status of carbon pricing at global level and weighed the effectiveness of the EU ETS and its impact on competition across various industries before examining the theoretical framework established to deal with the risk of carbon leakage for the direct and indirect carbon costs that they face as a result of the EU ETS.

This webinar forms part of the Energy Union Law Webinar Series. For more on these please see our dedicated portal.

More on Energy Union Law

Crisis as a Challenge for the EU’s Treaty Framework for Energy Security
Crisis as a Challenge for the EU’s Treaty Framework for Energy Security

The May 2023 Topic of the Month blog posts series examines the steps taken in law and policy to enhance…

Balancing Flexibility and Interoperability in the Digitalisation of the European Energy Market
Balancing Flexibility and Interoperability in the Digitalisation of the European Energy Market

On 30 November 2022, a #FSRDebate discussed the regulatory challenges arising from current European efforts to achieve system interoperability in…

Overview of Recent Energy Case Law from the CJEU: highlights from the event
Overview of Recent Energy Case Law from the CJEU: highlights from the event

On Friday, 2 December 2022, the FSR hosted the most recent edition of its popular biannual update on recent energy…

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top