This paper aims to increase the knowledge of how
carbon pricing impacts the cement sector, in particular on the industry’s investment decisions in an increasingly globalised world. In so doing it draws upon recent market information and empirical evidence, as well as the economic modelling and climate policy literature. In turn, an assessment is made of the likely effectiveness of the different options available to policy makers to reduce the impact of competitiveness and leakage concerns, focusing in
particular on the use of free allowances and border adjustment measures.
