CE: "This research hence results in the conclusion that there is ample evidence that the energy intensive industry has passed through the prices of their freely obtained allowances during Phase 1 and Phase 2 of the EU ETS (de Europese CO2-emissiehandel). This has generated windfall profits in these sectors. The cost price increase is identical as it would have been under an auctioning regime but without the possibility that governments would have to compensate consumers by recycling auction revenues. Politicians seem to have underestimated the potential of windfall profits in exposed sectors and have believed overall the claims of industry that additional costs cannot be passed through. The higher prices on the EU markets may have stimulated imports from non-EU producers but this was not quantitatively assessed in this study. The results, however, do point at the suggestion that free allocation falls short of its intentional goals: to prevent carbon leakage. Under free allocation both windfall profits and carbon leakage may be stimulated."P+ webtip 1: Het rapport van CE DelftP+ webtip 2: De volledige samenvatting van CE