Ralf Martin, Mirabelle Muûls, Ulrich Wagner, 24 May 2010

This week, the European Commission will release more details of its plans to tighten the greenhouse gas emissions targets in the EU’s Emissions Trading System. A key concern will be the potentially negative impact on the competitiveness of affected businesses. This column argues that industry is successfully exploiting such concerns to obtain free emission permits according to criteria that are too lax. Most of the exempt sectors would not close or relocate if they had to pay for permits, and removing these exemptions would raise €7 billion annually.

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