**Sandbag strongly urges all committee members to support the motion objecting to the Commission’s proposed carbon leakage list for 2015-2019 in the EU Emissions Trading Scheme.** In today’s emergency briefing we show how the methodology applied in the Commission’s Draft Decision captures too many activities which are not genuinely exposed to carbon leakage. We also demonstrate how this leads to continued over-allocation of free allowances to industry. In light of this, we argue that the Commission should be asked to submit a new decision to the Climate Change Committee using more realistic parameters.

[**Read the full briefing here (PDF).**](http://www.sandbag.org.uk/site_media/pdfs/reports/Emergency_MEP_briefing_on_the_2015_to_2019_Carbon_Leakage_List.pdf “”)

The problem centres around the Commission’s draft carbon leakage decision which continues to apply a €30 price forecast for Allowances on the Emissions Trading Scheme, when the Commission’s own Reference Scenario and other analysts surveyed in the Commission’s Impact Assessment expect a price of only €10 in 2020 under current policy. Furthermore, the current actual price of an allowance is just under €6.

Sandbag is urging the Environment Committee to [support the motion objecting to the draft carbon leakage list](http://www.sandbag.org.uk/site_media/uploads/Bas_Eickhout_ENVI_carbon_leakage_motion_Sept_2014.pdf “”), called by a cross-party group of MEPs; Bas Eickhout (Greens/EFA), Sirpa Pietikäinen (EPP), Merja Kyllönen (GUE/NGL), Piernicola Pedicini (EFD), Catherine Bearder (ALDE), and Jytte Guteland (S&D).

The European Commission’s Impact Assessment, using a €16.50 projected carbon price, [is available here.](http://www.sandbag.org.uk/site_media/uploads/IA_for_2015-19_carbon_leakage_list.pdf “”)

**_UPDATE: The vote was narrowly lost, with 30 supporting Bas Eickhout’s amendment, and 34 against._**

**_DECEMBER UPDATE:_** _[Sandbag have joined Greenpeace, WWF, and Carbon Market Watch, in requesting an Internal Review of the Commission’s decision.](http://www.sandbag.org.uk/site_media/pdfs/reports/WWF_Greenpeace_CMW_Sandbag_Internal_Review_ETS_free_allowances_Dec_2014.pdf “”)_ _(PDF)_