Emissions intensive trade exposed sectors

OBPSs matter most for sectors that are Emission-Intensive and Trade-Exposed (EITE). That is, they produce relatively large amounts of GHG emissions per unit of output, and they compete in highly traded markets, and competitiveness pressures. emissions intensive, trade exposed entities that experience significant changes to the emissions or their competitive environment. These allowances would also be accessible for direct allocation to new or expanded industrial manufacturing that is identified as emissions-intensive, trade exposed. While this affects firms 'pricing and production decisions in ways that can, in some cases, introduce unintended consequences and increase the cost of meeting an emissions target, when applied to energy-intensive trade-exposed industries, the incentives created by such allocations can contribute to the goal of reducing emission leakage

4 Nov 2019 Emissions-intensive and trade-exposed industries (EITEIs) are the most exposed to the risk of carbon leakage. Leakage has been studied  Annual global industrial sector carbon emissions must drop by 40% between 2014 and 2060 cycles for emission-intensive industries of cement and steel ( see Section 5. with industry players and trade unions, to support employment as industries These efforts can improve human health by reducing exposure to toxic  8 Feb 2012 The European Union Emissions Trading System (EU ETS) was allocation targeted to energy-intensive, trade-exposed industries can be more  Only Labor will build an Emissions Trading Scheme and a suite of energy emissions intensive, trade exposed (EITE) industries and identify options to support  It covers 45% of EU emissions, including energy intensive sectors and under the EU ETS, and has been recognised as a sector exposed to international trade,   Allowances under the cap are distributed through auctions, with free allocation to emissions-intensive, trade-exposed sectors. Offsets are eligible for compliance,  Emissions-Intensive, Trade Exposed Industries (EITEs) •EITE is a specific designation given to certain large, industrial facilities that exceed an emissions threshold and are directly covered by a carbon pricing program. •EITE designation is usually based on demonstration of the potential for “emissions leakage.”

27 Nov 2018 Jurisdictions implementing emissions pricing often face concerns arising from emissions-intensive and trade exposed (EITE) industries.

Allowances under the cap are distributed through auctions, with free allocation to emissions-intensive, trade-exposed sectors. Offsets are eligible for compliance,  Emissions-Intensive, Trade Exposed Industries (EITEs) •EITE is a specific designation given to certain large, industrial facilities that exceed an emissions threshold and are directly covered by a carbon pricing program. •EITE designation is usually based on demonstration of the potential for “emissions leakage.” The Commonwealth Government’s Emissions-Intensive and Trade-Exposed (EITE) scheme is designed to compensate industries affected by the incoming carbon price who are unable to pass costs downstream due to international competition. The scheme involves a rigorous assessment process, focussing on specific eligible activities. emissions-intensive trade-exposed processes in the economy and, as far as possible, is applied consistently across industries. In doing so, it is recognised that there are inherent synergies between parts of production processes, and that those synergies can vary from one

emissions intensive, trade exposed entities that experience significant changes to the emissions or their competitive environment. These allowances would also be accessible for direct allocation to new or expanded industrial manufacturing that is identified as emissions-intensive, trade exposed.

A sector or sub-sector is also deemed to be exposed if: the sum of direct and indirect additional costs is at least 30%; or the non-EU trade intensity is above 30%. The cost estimate referred to above takes into account that sectors not on the carbon leakage list are also eligible for some free allocation. The aim of the OBPS is to minimize competitiveness risks for emissions-intensive, trade-exposed industrial facilities, while retaining the carbon price signal and incentive to reduce GHG emissions. The charge is not intended to apply to fuel used at a facility that is part of the OBPS. One of the basic eligibility requirements is that facilities need to be operating in an industry that is "emissions-intensive and trade-exposed" (EITE). Businesses in EITE industrial sectors face a higher risk of emissions leakage. That is why they are eligible to receive this credit. Exemption will be available of up to 90% for highly emissions-intensive industries and up to 60% for moderately emissions-intensive industries. However, the full amount of assistance in each case will only be available where the market price of RECs is above $40 over a certain period. Allocation of some free permits to emission-intensive trade-exposed sectors, as the Government proposes, eases their transition to a low-emission economy in the initial years. Broadly based market-oriented policies, such as emissions trading, allow the market to respond as new information becomes available. risks for emissions-intensive trade-exposed industrial facilities, while retaining the carbon price 35 signal and incentive to reduce GHG emissions” (Environment and Climate Chang e Canada 2018a). government to addre ss the competitiveness of emissions-intensive trade-exposed sectors, t o help . them reduce their em issions and continue to thrive economically” (British Columbia Min istry of .

Applications for emissions-intensive trade-exposed (EITE) activity exemption certificates. From 1 August 2019, companies who conduct eligible EITE activities  

A1.2 Greenhouse Gas Emissions by Main Sector in EU-28, Change 1990–2012 vulnerable sectors such as energy-intensive and trade-exposed sectors. 30 Oct 2018 from 35 energy-intensive, trade-exposed (EITE) industrial sectors in oil and gas, and on GHG process emissions from some sectors (e.g.,  Carbon leakage – the increase in foreign emissions that results as a consequence of in competitiveness of energy-intensive, trade-exposed industries. as being impacted by the New Zealand Emissions Trading Scheme​ (ETS). in this category are termed Emissions Intensive and Trade Exposed. 22 Nov 2018 economy—concentrating on its emissions-intensive trade-exposed (EITE) industrial sectors. Up to 2021, the study finds that the Mexican ETS 

22 Jul 2019 She also suggests that the existing greenhouse gas emission reduction at the border is to prevent the relocation of carbon-intensive production to These are trade-exposed sectors facing high carbon costs, and they have 

government to addre ss the competitiveness of emissions-intensive trade-exposed sectors, t o help . them reduce their em issions and continue to thrive economically” (British Columbia Min istry of . There is one catch with carbon pricing. If other jurisdictions have much lower carbon prices or no carbon price at all, businesses that in Canada that face carbon prices will be at a competitive disadvantage. This problem is pronounced in energy-intensive trade-exposed (EITE) sectors of our economy. OBPSs matter most for sectors that are Emission-Intensive and Trade-Exposed (EITE). That is, they produce relatively large amounts of GHG emissions per unit of output, and they compete in highly traded markets, and competitiveness pressures.

A sector or sub-sector is also deemed to be exposed if: the sum of direct and indirect additional costs is at least 30%; or the non-EU trade intensity is above 30%. The cost estimate referred to above takes into account that sectors not on the carbon leakage list are also eligible for some free allocation. The aim of the OBPS is to minimize competitiveness risks for emissions-intensive, trade-exposed industrial facilities, while retaining the carbon price signal and incentive to reduce GHG emissions. The charge is not intended to apply to fuel used at a facility that is part of the OBPS. One of the basic eligibility requirements is that facilities need to be operating in an industry that is "emissions-intensive and trade-exposed" (EITE). Businesses in EITE industrial sectors face a higher risk of emissions leakage. That is why they are eligible to receive this credit. Exemption will be available of up to 90% for highly emissions-intensive industries and up to 60% for moderately emissions-intensive industries. However, the full amount of assistance in each case will only be available where the market price of RECs is above $40 over a certain period. Allocation of some free permits to emission-intensive trade-exposed sectors, as the Government proposes, eases their transition to a low-emission economy in the initial years. Broadly based market-oriented policies, such as emissions trading, allow the market to respond as new information becomes available.