“Climate Policy does not threaten European competitiveness”

Earlier this year, Europe’s climate commissioner Connie Hedegaard publicly challenged industry concerns that the bloc’s ambitious climate policies would lead to “carbon leakage” as industrial firms were forced to leave the continent by high energy prices and tough environmental regulations. She argues that Europe should be less concerned over overblown fears of “carbon leakage”, and instead be more concerned about “low carbon leakage”, whereby innovative and fast expanding clean tech firms leave the EU for countries that welcome their invaluable contribution to a modern and sustainable economy. Last month, the chief economist of BP told Reuters that he regarded warnings that industrial firms would up sticks and leave the EU over rising energy costs as a “red herring”.