"A major concern related to the interaction of climate change and trade is the adverse impact that climate policies might have on the competitiveness of countries which implement more ambitious climate policies compared to other countries. Differences in climate change policies will not only have an impact on trade, they can also lead to increased emissions in regions with no or less ambitious climate change policies, the so-called carbon leakage. This report discusses the impacts of the EU ETS and climate policies in other countries on competitiveness and on leakage in 2020." (Quoted from paper)