More Allowances, More Revenue? The Industrial-Policy Stakes of the EU ETS Reform

On July 17, the European Commission presented a draft reform of the European carbon market, which notably proposes to extend free emission allowances. The risk of this reform is that it could reinforce uncompetitive industrial trajectories and institutionalize a system of public subsidies at the expense of innovation, as this article-based on data from the International Monetary Fund-demonstrates.…