On July 1 2019, the European Commission will present its proposal to the European Parliament and the Council. The Center for Climate and Energy Research has published a report entitled „Risk of carbon leakage in the context of increasing the EU’s greenhouse gas emission reduction target”.
The direct objective of the analysis was to assess the possible scale of carbon leakage using different policy scenarios and assumptions, including the impact on emissions, GDP and the functioning of economic sectors.
The analysis leads to the conclusion that carbon leakage may reduce the efficiency of the EU’s energy and climate policy and thus affect global emissions, as well as the functioning of the economy, industry and prosperity in countries with more stringent reduction targets. Emissions leakage outside the EU should be seen as an important problem that may affect EU Member States whose mix is based on fossil fuels (including Poland) and energy-intensive sectors of the economy, i. e. the steel, mineral and chemical sectors.