University of Twente Student Theses


Can CBAM solve the EU ETS carbon leakages? - A Stakeholder Perspective

Völler, Paula (2023) Can CBAM solve the EU ETS carbon leakages? - A Stakeholder Perspective.

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Abstract:The paper deals with the proposed solution to the problem of carbon leakage in the European Union Emissions Trading System (ETS). The ETS aims to create economic incentives for CO2-intensive businesses to reduce their greenhouse gas (GHG) emissions. But despite the positive mitigation effects, the problem of carbon leakage remains. To solve that problem, the EU is trying to come up with a new policy approach, a carbon border adjustment mechanism (CBAM). The implementation of CBAM, however, is heavily dependent on the stakeholders involved and the need to reach a compromise between conflicting interests. This thesis aims to identify and highlight possible grounds for conflict and compromise. It does so, first, by examining the discourse patterns in the reactions of main stakeholders to the proposed solutions for carbon leakage by the European Commission. Second, the thesis explores whether these discourse patterns are linked to the underlying interests of the stakeholders. Theoretically, the thesis combines Yang et al.´s Stakeholder analysis of EU ETS and Görlach et al.'s classification of stakeholders' and their interest, both combined and based on Sabatier's Advocacy Coalition Framework, to analyze actors' reactions to the CBAM policy. Methodologically, the research is based on a qualitative content analysis of an EU survey that reveals the position of the stakeholders and makes it possible to identify similarities and differences in their underlying interests. The focus is on the examination of position papers, public reactions, and possibly other statements from stakeholders in the ETS debate. 1. Introduction and Relevance 1.1. Carbon Leakage in the EU ETS? Climate change is not a new or unknown threat to humans. It has been known and widely acknowledged for many decades that the earth is heating up and that this temperature rise will lead to catastrophic global changes. For almost as long, scientists have also known what and who is driving climate change: Greenhouse gasses (GHS) produced and emitted by humans. Stopping these warming processes is the stated goal of almost all countries and governments, and concrete steps to achieve this have been agreed on at least since the Kyoto Protocol (1997). The EU is one of the largest emitters of GHG, Behind China and the USA is it the third largest global polluter
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:Management Society and Technology BSc (56654)
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