An international comparison of energy and climate change policies impacting energy intensive industries in selected countries

The UK Government is committed to reducing carbon emissions to 80% below 1990 levels by 2050. This will require significant abatement in energy intensive industries (EIIs). However, in the absence of a binding global deal to reduce emissions, different countries are pursuing carbon reduction policies at different rates. This has an impact on the competitiveness of domestic industries. Having analysed the likely impacts of UK energy and climate change policies, the UK Government is interested in investigating the extent to which the same industries located in other countries also face similar energy and climate change policies, and the costs that these impose. This research is designed to increase the Government’s understanding of the policy frameworks towards EIIs in key countries. It represents an initial attempt to compile information on the energy cost impact of policies in other countries. In terms of energy prices, this report focuses on the impact of policies on electricity prices faced by those EIIs that purchase electricity from an energy supplier, rather than those that generate their own electricity on-site and who are therefore not subject to some of the policy costs.