EU ETS and competitiveness of Irish industry

Project Description

This research project will assess the impact of the proposed changes to the EU Emissions Trading Scheme (EU ETS) for competitiveness of Irish industry using multiple approaches. A literature review will examine international experience of emissions and EU ETS reform on industry competitiveness. Census of industrial production microdata will be used to assess the economic impact of emissions and electricity costs on a sectorial basis. EPA and EU emissions trading data will be analysed to identify the main sectors and companies affected by proposed changes to the EU ETS. Heavy emitters and large energy users will be surveyed to understand their experience trading the EU ETS followed by interviews to further understand the challenges and to assess the state of preparedness of Irish industry for deep decarbonisation scenarios. The effect of electricity prices on Irish competitiveness will be examined using an EU-wide electricity pricing model to identify potential opportunities / threats for Ireland as location for foreign direct investment. It is likely that Irish companies may need to more proactively engage in energy efficient investment and streamline production and procurement practices and policy recommendations on how to achieve this will be made.