CEMBUREAU, the association representing the European cement industry, said on Tuesday, 31 March, that it supports the idea of a carbon border mechanism as an opportunity to create a level playing field for carbon, provided certain principles are respected.
Work on such a mechanism, which aims to avoid European industry being penalised by companies from non-Member States that are less climate-friendly than the EU, was launched by the Commission in the framework of the European Green Deal (see EUROPE 12439/14).
According to CEMBUREAU, the design of this mechanism should respect the following principles: - in the initial phase, the mechanism must be complementary to the EU Emissions Trading Scheme (ETS) free allowances; - this mechanism must be fully WTO-compatible; - it must be based on verified emissions from importers to the EU and include indirect emissions; - it should be applicable to all ETS sectors alike; - and it should provide for a CO2 charge exemption for EU exporters.
The cement industry is an energy-intensive heavy industry, which as such benefits from free allowances under the ETS to avoid the risk of "carbon leakage" (offshoring), like the steel and chemical industries, much to the dismay of NGOs (see EUROPE 12242/8). (Original version in French by Aminata Niang)