European Commission Approves German Program to Prevent Carbon Leakage
Introduction
The European Commission said Thursday it has approved a 6.5 billion euro ($7.16 billion) German program aimed at preventing “carbon leakage”.
Understanding Carbon Leakage
Carbon leakage refers to an opportunity for energy-intensive companies to move production overseas to avoid violating regulations aimed at reducing harmful emissions.
The Package Details
The package includes part of the higher fuel prices that companies will suffer between 2021 and 2030 due to Germany’s emissions trading system, Reuters reported.
