This study was commissioned by the Greens/EFA Group in European Parliament to analyse the impact of carbon pricing on specific subsectors of the European economy and suggest suitable remedial policies when there is a risk of leakage.

The study shows that the
carbon leakage challenge is not resolved by the approach taken so far under the
revised EU Directive. From the in-depths analyses
undertaken also by other studies, it becomes clear that a policy response should differ along sector
characteristics.