EU Trade Commissioner Valdis Dombrovskis defended the EU’s proposed Carbon Border Adjustment Mechanism (CBAM) at a Bruegel online think tank conference on Friday, 3 September.
When asked about the need to involve more partners than just the EU in this mechanism, he gave his support to the European initiative that was proposed in July by the European Commission.
“I agree it would be a good scenario if the emission trading system would be global. But we are not there, at least not yet. So we have to act within the international reality”, he said.
The day before, the head of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, warned that the initiative could hurt other countries around the world (see EUROPE 12782/31).
As for Valdis Dombrovskis, the CBAM provides a strong incentive for trading partners to adopt a carbon pricing system, while also complying with international rules. “We have to be careful when we propose the CBAM, that it’s WTO compliant. Keyword is non discrimination in a sense it cannot put exporters to the EU in a worth situation than our own producers”.
When also asked about the actual effectiveness of trade policy in achieving environmental objectives, he expressed his belief that trade can contribute to achieving climate objectives. In his opinion, sustainability sections in trade agreements, due diligence, and a commitment to climate neutrality by G20 partners are elements of trade policy that all contribute to the green transition. (Original version in French by Léa Marchal)