Source: European Commission
The measures taken to support energy-intensive industries against the risk of carbon leakage are also examined as required under the ETS (Emissions Trading System) Directive. The Communication shows that the reduction in EU emissions as a consequence of the economic crisis, together with a drop in carbon prices, has changed the estimations two years ago when the revised ETS was presented. Therefore in light of the new data, an analysis of the implications of the different levels of ambition as a motor for modernising the EU economy and creating new jobs by promoting innovation in low-carbon technologies is provided. This analysis encompasses the efforts required in the main different sectors to reduce greenhouse gas emissions beyond 20%, up to 30%, looking also at the impacts of these efforts and the potential policy options to achieve them. The current context of constrained public finances and economic contraction is also fully taken into account when assessing possible alternatives.