Carbon leakage is defined as an increase of emissions outside the EU because of EU climate policies. As such policies affect the costs of economic activity, especially in energy intensive industries, they might cause companies to move production to countries with laxer greenhouse gas emission policies. Therefore, affected industries receive benefits, such as more free emission allowances in the EU...Read more

The opposition of few countries to market mechanisms coupled with limitations for involving developing countries, parties under the United Nations Framework Convention on Climate Change are considering measures known as non-market-based approaches, like policies and regulations. This knowledge package shows the involvement of definition of non-market-based approach, ensuring environmental integrity and ensuring sustainable development.Read more

To realise the savings aimed at with the 20-20-20% targets for 2020, the European Union has introduced a mix of climate policies, using a variety of policy instruments and targeting all economic sectors. The different policies have fulfilled their purpose with varying success and different performances regarding environmental and cost effectiveness, as well as additional impacts on society. Read more

Policies to address climate change mitigation that have been deployed in parallel may interact with each other, with positive or negative effects for emission reductions and for cost-effectiveness. This Knowledge Package explains the economic theory behind such policy interactions and discusses why even with a carbon price (such as that generated by the EU Emissions Trading Scheme) the introduction of...Read more