Impacts of the EU Emissions Trading Scheme on the industrial competitiveness in Germany

How does emissions trading influence the competitiveness of the German industry? By increasing the costs of domestic production, emissions trading may induce the relocation of industrial production and the associated emissions – e.g. to non-EU countries with few or no climate protection regulations. On behalf of the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency, the impacts of emissions trading on the competitiveness of German industry have been quantified for the first time.