In the third phase of the EU emissions trading scheme (2013-2020) sectors overly exposed to carbon leakage can obtain free emission credits up to a harmonised benchmark for their production-related CO2 emissions. Decisions on the sectors eligible for free credits are based on two indicators: additional carbon costs and trading intensity. These indicators are calculated using data from across the EU and the Netherlands Petroleum Industry Association commissioned CE Delft to calculate them specifically for the Dutch situation, to assess the relative competitiveness of the national refinery sector vis-à-vis environmental costs compared with the European average.
The study reports trends in the two indicators between 2005 and 2012. The data show that the Dutch refinery sector incurs slightly higher costs than the European average and has a far higher trading intensity – even after correcting for re-exportation.