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Europe Daily Bulletin No. 12869
SECTORAL POLICIES / Agriculture

Agricultural sector should be included in EU’s Carbon Border Adjustment Mechanism, according to MEPs’ opinion

In their opinion adopted on 10 January (27 votes in favour, 3 against and 18 abstentions), MEPs on the European Parliament’s Committee on Agriculture called for the swift inclusion of the agricultural sector in the future EU Carbon Border Adjustment Mechanism (CBAM), which is due to enter into force starting in 2023.

According to the opinion drafted by Zbigniew Kuźmiuk (ECR, Poland), the Committee on Agriculture wants the scope of this mechanism to be extended “as soon as possible to agricultural products, provided this is done after a full impact assessment and broad cross-sectoral consultation”.

The inclusion of agricultural products in this scheme is all the more important as the sector will be affected by the inclusion of other products, notably fertilisers, steel and aluminium.

MEPs recall that the European Commission is committed to continuously monitoring the stability of the EU internal market, including agricultural markets, and to taking strong corrective action, including financial compensation for farmers, if the profitability and viability of agricultural production is seriously affected by the implementation of the new mechanism.

The Committee on Agriculture is also asking the Commission to assess the possibility of using CBAM revenues to reduce dependence on fertilisers.

CBAM should be “transparent, proportionate, easy to administer and avoid undue financial and administrative burdens on business”, the opinion says. 

The draft report by Mohammed Chahim (S&D, Netherlands) does not mention agriculture for the time being, but it advocates for a more ambitious mechanism than the Commission’s initial proposal, including a broadening of the sectors covered, an earlier entry into force date and a quicker exit from free allocation of allowances (see EUROPE 12863/1).

The European Parliament’s Committee on Environment is expected to adopt its final position in the coming months, with a plenary vote scheduled for June at this stage.

Link to the opinion available since 12 January: https://bit.ly/3fnJarQ (Original version in French by Lionel Changeur)

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