Towards zero carbon emissions – Climate policy instruments for energy intensive industries, materials and products
Energy intensive industries (EIIs), producing the basic materials and products needed in society, contribute significantly to global emissions of greenhouse gases (GHGs). Motivated by the fear of carbon leakage, climate policy has so far treated the EIIs leniently with e.g. low carbon prices and/or free allocation of emission allowances. This has not resulted in more than marginal emission abatemeEnergy intensive industries (EIIs), producing the basic materials and products needed in society, contributesignificantly to global emissions of greenhouse gases (GHGs). Motivated by the fear of carbon leakage, climatepolicy has so far treated the EIIs leniently with e.g. low carbon prices and/or free allocation of emissionallowances. This has not resulted in more than marginal emission abatement.
