The Carbon Challenge to Competition - Ensuring Undistorted Competition and Competitiveness Under the Current and New Emissions Trading Scheme Directive
27 Pages Posted: 12 Feb 2010
Date Written: February 11, 2010
Abstract
This paper examines the impact of the Emissions Trading Directive (2003/87) and the recent amendment by Directive 2009/29 on competition. It does this by examining the rules on, inter alia, transitional free allocation and carbon leakage from the perspective of EU competition law. The idea underlying this is that undistorted competition is likely to keep abatement costs as low as possible whilst creating an incentive to invest in (more efficient) abatement technology. The generous application of the carbon leakage provisions is considered a missed opportunity in this regard.
Keywords: Climate Change, EU, Directive 2003/87, Directive 2009/29, Competition, Competitiveness, Carbon Leakage
JEL Classification: K2, K23, L4
Suggested Citation: Suggested Citation