<p>The Government has not made such an estimate. However UK industrial sectors—including the cement sector—will receive over 510 million free allowances over the course of Phase III (2013-20) of the EU Emissions Trading System, worth over £2.5 billion at the current allowance price of around €5/tCO<Sub>2</Sub>. This level of allocation is after theapplication of the Cross Sectoral Correction Factor, which will beapplied uniformly to all non-electricity generating installationsacross theEU.</p><p>The Government recognises the risk of carbon leakage within the EU ETS, and supports the proportionate free allocation of allowances as a tool to mitigate this, without raising barriers to international trade. However, we have expressed concern to the European Commission that those most at risk may not be compensated sufficiently in the future if current rules are not reformed to ensure that free allowances are better targeted to those sectors genuinely at significant risk. We continue to monitor and evaluate the impact of the EU ETS on the competitiveness of UK industry, and have commissioned research to investigate this issue further. The cement industry is folly involved in the conduct of that research via the Mineral Products Association.</p>