Traditionally discussed measures to prevent carbon leakage under the E uropean U nion ( EU ) emissions trading system, such as the free allocation of allowances or border carbon adjustments, either suffer from significant economic drawbacks or have seen their political, legal and administrative feasibility questioned. Recently, a novel approach has been proposed in the form of the inclusion of consumption into emissions trading schemes. Under this approach, a charge would be imposed on carbon‐intensive products at the time of their release for consumption within the EU . After sketching this proposal, this article discusses the correct legal basis under EU law. It develops the argument that the inclusion of consumption may be based on Article 192.1 of the Treaty on the Functioning of the EU and thus be adopted without unanimity voting in the Council of the EU .
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Ismer et al. (2015) studied this question.