The German think tank Agora Energiewende has published a report on the implementation of the Carbon Border Adjustment Mechanism (CBAM). The author suggests, among other things, that export assistance for European companies in sectors covered by the CBAM should be considered.
“Insofar as exporters will lose market share to more carbon-intensive competitors, carbon leakage will occur”, says report author Oliver Sartor.
He also joins the camp of those who believe that free allocation of allowances under the Emissions Trading System (ETS) should be phased out by 2030. The rapporteur of the CBAM text in the European Parliament, Mohammed Chahim (S&D, Netherlands), has so far made a proposal to this effect (see EUROPE 12862/3).
To achieve this, however, Oliver Sartor says it is necessary to offset the losses of European companies by supporting low-carbon technologies. He is on this point again in agreement with Mohammed Chahim.
See the report: https://bit.ly/3qL0kWV (Original version in French by Léa Marchal)