Why Europe is not carbon competitive

Contrary to what is generally pictured, this policy brief shows that when considering the export mix, Europe is more vulnerable to carbon pricing schemes than other countries and regions. Europe specialises more than its main global competitors in industries with relatively high carbon emissions, such as minerals and chemicals, rather than in high-tech industries and services . This would have a real effect on Europe‘s competitiveness in a world regulated by carbon pricing schemes such as the EU‘s Emissions Trading Scheme – even if other blocs apply them as the EU does.