The European Union Emissions Trading Scheme (EU ETS) was introduced by the European Union in order to reduce greenhouse gas emissions in an effective and most cost efficient way possible. It has been revised and extended since its start in 2005. The revised emissions trading directive for the third phase of the EU ETS (2013 - 2020) also includes an ambitious timeline for the identification of industrial sectors which are exposed to the risk of carbon leakage. In the light of the outcome of the international negotiations, the European Commission shall submit by mid-2010 to the European Parliament and to the Council a report with regard to energy-intensive sectors deemed at risk of carbon leakage.The aim of this project is to support the European Commission in the international dimension of the carbon leakage assessment by:- Establishing a comprehensive data set to deal with the issues related to carbon leakage in the selected sectors and countries,- A comparison and analysis of non-EU regions commitment to reduce greenhouse gas emissions to the European effort,- Further developing the computable general equilibrium (CGE) model PACE, in particular improving the sectoral representation of the selected industries,- Based on the developed model framework, analysing policy scenarios in the light of the outcome of the COP 2009 negotiations and in preparation of COP 2010.