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

The aim of this paper is to assess the following issues

  • Which sectors in Germany may face significant increases in direct or indirect costs because of the EU ETS?
  • Which sectors are likely to face a high exposure to international competition which could then lead to carbon leakage?
  • Which mechanisms exist to address competitiveness/leakage concerns arising in the context of the EU ETS?