The article discusses how emissions trading affects the competitiveness of European industries. It looks at how companies allocate emissions, the incentives they have to reduce emissions, and how this impacts their profits and market prices. The study also examines how the cost of reducing CO2 emissions is passed on to consumers and how this affects different sectors like the power and cement industries. The researchers explore the impact of free allowances and auctioning on industry competitiveness under the EU Emissions Trading Scheme.