Competitiveness and Linking of Emission Trading Systems
The establishment of emission trading systems raises concerns among industries regarding international competitive disadvantages for the industries under an emissions cap. This study aims to assess competitiveness exposure of industrial sectors and presents policy measures to address these concerns. Emission trading systems (ETS) are intended to introduce a price on carbon to give an incentive to reduce emissions and thereby mitigate climate change. In the absence of a global ETS, industrial sectors or subsectors are not equally affected by the resulting associated direct and indirect costs depending on if they are located in an emission constrained jurisdiction.