Some 15 ministers from nine EU countries (Austria, Spain, Denmark, France, Lithuania, Luxembourg, the Netherlands, the Czech Republic and Slovakia) called for the creation of an “effective, legitimate and fair” Carbon Border Adjustment Mechanism (CBAM) on Tuesday 23 March in an opinion piece published by the media outlet Politico.
With the European Commission due to publish its legislative proposal in June 2021, ministers set out a number of elements to be taken into account to ensure that the CBAM contributes to the EU’s long-term climate objectives.
Without going into the details of the mechanism, they outline broad outlines and principles that are largely in line with those set out in the own-initiative report adopted by the European Parliament on 10 March. In both cases, particular attention is given to WTO compatibility and the principle of non-protectionism.
The ministers also stress the need to have a “good articulation” with the existing emissions trading system (ETS). The European Parliament’s report favours the option of a mirror system of the ETS, rather than a solution in the form of a carbon tax, for example (see EUROPE 12675/8, 12650/7).
In line with the MEPs, the ministers want the level of development of the third countries concerned and their climate policy to be taken into account in the future mechanism.
Finally, both countries are in favour of a gradual approach to the sectors to which the CBAM should apply. “It could first be applied to a limited number of pilot sectors with a high risk of carbon leakage, and where the mechanism is technically and administratively feasible”, they say.
The European Parliament advocates an initial application to industrial sectors such as cement, steel, aluminium, oil refineries, paper, glass, chemicals and fertilizers.
See the forum: https://politi.co/3lOUTlD Original version in French by (Léa Marchal)