On Tuesday 15 December, the members of the European Parliament Committee on Industry, Research and Energy (ITRE) adopted a draft opinion by Jens Geier (S&D, Germany) on the future EU Carbon Border Adjustment Mechanism (CBAM) by a narrow majority (by 37 votes to 32, with four abstentions).
Instead of expressing a preference for one option over another (a mechanism mirroring the EU’s ETS, customs duties, a consumption tax, etc.), the ITRE Committee called on the European Commission to carry out a thorough impact assessment of all of the forms the mechanism could take before presenting a legislative proposal.
The opinion does, however, suggest a “progressive and sector-specific mechanism” that would particularly include all of the most carbon-intensive and commercially active sectors, such as the energy-intensive steel, cement and aluminium industries, the electricity sector, plastics, chemicals and fertilisers.
The opinion also asks the Commission to assess the possibility of beginning implementation of the mechanism by phasing out free ETS allowances. The members of the Committee were divided on this proposal, the EPP, ECR and ID groups unsuccessfully proposing that free quotas be maintained alongside the planned CBAM.
Lastly, the ITRE Committee stated that the mechanism’s scope should cover as much of a product’s carbon footprint as possible. In so doing, the Committee emphasised the need to take into account transport emissions for imports, as well as emissions from the energy used in manufacturing the product and throughout the value chain.
The vote in the Committee on the Environment (ENVI), which is the committee responsible for this matter, is scheduled for 25 January. (Original version in French by Damien Genicot)