This study analyzes different approaches to ensure the competitiveness of export-oriented companies and evaluates them based on different criteria. While a free allocation of certificates as well as export subsidies score poorly in the evaluation, the study authors recommend targeted innovation promotion as a particularly beneficial policy instrument.

This project analyzed different policy options that could counteract such export-related leakage, but which are problematic in different ways in terms of their environmental, political, and legal implications. The analysis identifies targeted innovation support as a promising option because it minimizes legal and political risks while also offering climate benefits beyond leakage protection for European industry. Guiding principles for technology support measures were derived.