Statement of Resource Person, Dylan Tanner 6 November 2018 a. The dilution of the European Union’s Emissions Trading System (ETS), 2005 to present. The ETS was launched in 2005 as a cornerstone of the EU’s policy to combat climate change. Focusing on emissions from industrial and power facilities, it covers 45% of the EU’s greenhouse gas emissions.40 Since the first efforts to formulate the EU ETS in 2000 through to 2018, research shows European industry lobbying to have consistently attempted to block or weaken proposals from the European Commission that would ensure it is both effective and ambitious. 41 In particular, this lobbying has succeeded in maintaining a set of rules exempting industries representing 90% of total industry emissions from full participation in the scheme through the allocation free emission permits,42 shielding related companies from the primary incentive to reduce emissions. In 2015, research from the University of Westminster identified a core group of trade organizations that have led the negative influencing on climate policy in Europe. 43 This finding has been corroborated by InfluenceMap research, which shows that trade groups BusinessEurope (cross sector group), European Chemical Industry Council (CEFIC), CEMBEUREAU (cement), FuelsEurope (oil & gas), Eurofer (steel) and Eurometaux (metals) to have actively opposed the original ambition and extent of the EU ETS. Between 2013-2018 these groups have persistently opposed European climate change policy ambition, arguing that it will negatively impact industrial competitiveness in the region. For example, in 2014 CEFIC argued that re-industrialization was being held “hostage” by an energy policy “subdued to climate policy ambitions” and stressed the underlining “negative economic consequences” of the EU’s unilateral climate policies.44 A leaked internal memo from BusinessEurope in 2018 proposed the continuation of a similar lobbying strategy: “To oppose the new increase in ambition, using the usual argument of global playing field.”45 This high-level strategy against climate policy ambition has been followed up with intense lobbying on the details of the EU ETS. A 2016 InfluenceMap study has highlighted a decades long effort by EU cement association CEMBUREAU to undermine EU ETS ambition in this 40 EU Emissions Trading System (EU ETS), European Commission Website, October 2018 41 The EU ETS and the European Cement Industry: A decade of lobbying and distortion, InfluenceMap, February 2017 42 Big polluters continue to get a free pass on Europe’s carbon market, Carbon Market Watch, Femke de Jong. May 2018 43 Lobbying by Trade Associations on EU Climate Policy, PSI Policy Studies Institute, March 2015 44 EU’s re-industrialisation dream ‘hostage’ of high energy prices, Euractiv, February 2014 45 Trade group including Facebook, Google to ‘oppose’ EU climate efforts, Unearthed, September 2018 11