The project provides support to the Commission in the preparation of the second “carbon leakage list”, i.e. the list of sectors deemed at risk of carbon leakage for the period 2015-19. Carbon leakage means a shift of carbon-intensive production or investment – and thus emissions – to countries not covered by the EU-ETS, due to carbon pricing within the ETS scope. Apart from being a competitiveness issue, carbon leakage also potentially undermines the main aim of the ETS, namely the reduction of carbon emissions. Therefore the amended ETS Directive contains specific provisions in order to prevent carbon leakage. According to this Directive, if a sector is on the carbon leakage list, its installations receive 100% of the benchmark value allowances for free.