Manufacturing sectors in the EU ETS.

Summary The thesis focuses on the aggregated non-electric sector covered by the EU ETS. The contribution of the non-electric sector to changes in CO2 emissions during the first two phases of the market (2005-2012), from both the final demand and supply side, is compared to that of the electric sector. The implications of the free allocation of allowances to the non-electric sector during the third phase of the market (2013-2020) are examined, which is one of the first in-depth evaluations of the benchmarks established in Phase 3. It is shown that, from both the final demand and the supply side, the non-electric sector, due to its interdependencies and level of activity, contributed more to changes in CO2 emissions than the electric sector did during the period 2005-2012. It is also shown that, despite its redistributive effects, the free allocation mode by benchmarks as it has been defined, remains imperfect and is thus not commensurate with the central role of the non-electric sector in the functioning of the market.