France and Germany are joining forces to pressure the European Commission to design a new protection mechanism for European exporters. According to a draft document seen by Bloomberg, the two countries will urge the European Commission to propose solutions to prevent European industries from migrating outward in the process of tightening climate rules. Other major economies, such as Spain and Italy, are also expected to support this initiative. The draft document mentions, “If no compensation measures are taken, the gradual rise in carbon costs borne by EU producers will weaken their competitiveness in third country markets and may lead to carbon leaks.”

France and Germany are joining forces to pressure the European Commission to design a new protection mechanism for European exporters. According to a draft document seen by Bloomberg, the two countries will urge the European Commission to propose solutions to prevent European industries from migrating outward in the process of tightening climate rules. Other major economies, such as Spain and Italy, are also expected to support this initiative. The draft document mentions, “If no compensation measures are taken, the gradual rise in carbon costs borne by EU producers will weaken their competitiveness in third country markets and may lead to carbon leaks.”