As France continues to push for a new border levy for carbon-intensive products entering the EU, German stakeholders fear that removing their free permits to pollute could destroy their competitiveness abroad.
The EU carbon price is approaching €100 per tonne and imposes climate protection costs on European industries that are unmatched anywhere else in the world.
So to stop companies leaving Europe for countries where it is cheaper to produce emissions, known as “carbon leakage”, the EU currently allows certain businesses to escape the carbon price via the free allocation of emission certificates.
Source euractiv
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