|Second carbon leakage list – basic legal environment for the issue - Page 2|
|Monday, 23 July 2012 06:45|
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Data elements that would need to be taken into account for the determination of the second carbon leakage list
The following data elements would need to be taken into account for the determination of the second carbon leakage list:
Direct carbon costs for each of the sectors eligible for analysis defined as the costs associated with the allowances which might need to be purchased by the sector to meet the surrendering obligation of the ETS Directive. The direct costs should be estimated based on the relation of the direct emissions of the sector to the gross value added (GVA) of the sector.
Indirect carbon costs for each of the sectors eligible for analysis defined as the costs indirectly associated with the ETS Directive, such as electricity costs. The indirect costs should be estimated as a relation of the indirect emissions of the sector, calculated by taking into account the electricity consumption and electricity emissions factor to the gross value added (GVA) of the sector.
Gross value added at factor costs as defined in the Eurostat methodology for each sector eligible for analysis.
There might be a need to remove countries from the scope of the trade intensity assessment, if deemed necessary based on an analysis of the impact of Article 10a(18a) of the ETS Directive.
According to Article 10a(17) of the ETS Directive, sectors or subsectors can be assessed also based on qualitative criteria: emission reduction potential and cost, market characteristics and profit margins and it is estimated that the scope of the qualitative assessments will cover maximum sectors.
The European Commission has currently announced the call for tender ‘Carbon leakage and competitiveness assessment’ (time-limit for receipt of tenders 23 August 2012, CLIMA.B.2/SER/2012/0019, available at ec.europa.eu/clima/tenders/tenders_en.htm).
So, it is apparent that the work on the second carbon leakage list in the coming moths will gain momentum. It is obviously the key issue to monitor for interested stakeholders.
For more information see also Final report 'Support to the Commission for the determination of the list of sectors and subsectors deemed to be ex- posed to a significant risk of carbon leakage for the years 2015-2019 (EU Emission Trading System)' dated January 2013.