By amending the rules on certain State aid measures under the Emissions Trading System (ETS), adopted last 23 December, the European Commission intends to mitigate “the heightened risk of carbon leakage [...] for energy-intensive sectors”.
This risk - which arises when companies relocate their production to countries outside the EU where emission constraints are less stringent, or when EU products are replaced by more carbon-intensive imports - is increasing due to the steady rise in...