European Emission Trading System (ETS) – Calculations on the regional employment impact of ETS installations
European Emission Trading System (ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions (GHG). The system operates in all EU-27 countries plus Iceland, Liechtenstein, Norway, and the UK (the UK participated until 31 December 2020), covering over 11,000 heavy energy-using installations (power stations & industrial plants) and airlines. The EU ETS works on the 'cap and trade' principle. A cap is set on the total amount of certain GHG that can be emitted by installations covered by the system. Then within the cap, companies receive or buy emission allowances.
Under this study, PPMI consolidated the data from three datasets into a single database: 1. ETS installation identifiers and emissions provided by the European Commission; 2. Company identifiers and data on economic parameters, such as the number of employees, for years 2011-2019 from Orbis company database; 3. General employment data by economic activity (NACE) in NUTS 2 and NUTS 3 regions from Eurostat. Based on the data collected, PPMI provided calculations to the European Commission (DG REGIO) on the regional employment impact of ETS installations in NUTS 2 and NUTS 3 regions in the EU-27, Iceland, Liechtenstein, Norway, and the UK. The employment analysis covers the spread of EU ETS installations across the regions, the estimated share of employees working in EU ETS installations in the number of total employees in the region, identifying NUTS 2 and NUTS 3 regions with the highest estimated employment impact of EU ETS installations. While the study mainly focuses on the number of people employed by the EU ETS installations in the regions, it also sheds light on other policy-relevant angles, for example, it also analyses the employment of EU ETS installations in the context of economic activities pursued or the amount of greenhouse gas emissions emitted in the regions.
Full study report is available here: https://ec.europa.eu/regional_policy/en/information/publications/studies/2021/european-emissions-trading-system-ets-calculations-on-the-regional-employment-impact-of-ets-installations