Carbon leakage and mitigating measures

On 14 July 2021, the European Commission adopted a series of legislative proposals implementing its plan to achieve climate neutrality in the EU by 2050. These included an intermediate target of at least a 55% net reduction in greenhouse gas emissions by 2030. The proposal involved changes to various EU climate laws, including the EU Emissions Trading System (ETS), with measures to decarbonise energy-intensive industries and regulations related to transport and land use. It detailed EC plans to achieve the EU climate targets set in the European Green Deal. Industrial installations at significant risk of carbon leakage receive special treatment in the EU ETS to enhance their competitiveness. The EC has also launched a Competitiveness Compass, an essential initiative that provides a strategic and clear framework for three core areas of action: innovation, decarbonisation and security. In March 2025 it also presented a Clean Industrial Deal to boost competitiveness and decarbonisation.