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Image header Agence Europe
Europe Daily Bulletin No. 12882
SECTORAL POLICIES / Climate/trade

Differences on Carbon Border Adjustment Mechanism remain strong in European Parliament

The report on the Carbon Border Adjustment Mechanism (CBAM) continues to be debated in the European Parliament while the French Presidency would have liked to have seen the text move forward as quickly as possible during this half-year period. 

Beyond the substantive differences, the scope of the report is also problematic. In the Committee on the Environment, Public Health and Food Safety, MEP Peter Liese (EPP, Germany), rapporteur for the directive on the review of the EU Emissions Trading System (ETS), criticised Mohammed Chahim (S&D, Netherlands), rapporteur on CBAM, for not respecting their respective competences (see EUROPE 12872/4, 12863/24). “It is really not ok that you intervene in the competences of ETS report. Some parts of your report should be in the ETS report. We need to be careful respecting each other's competences”, he reproached his Socialist colleague.

The latter considered that the exit of free allocations from the ETS was an essential part of the justification for the entry into force of the CBAM.

On the speed of the exit of these free allocations, the two rapporteurs have very different positions, which reflect the division within the European Parliament.

Other issues remain open, such as export rebates, the use of CBAM revenues and an exemption for the least developed countries. 

On the other hand, there seems to be a majority in favour of Mohammed Chahim’s proposal to have a central authority managing CBAM - as opposed to competent authorities in each Member State, as the Commission had proposed.

See the report by Mohammed Chahim: https://aeur.eu/f/4q

See Peter Liese’s report: https://aeur.eu/f/4r (Original version written in French by Léa Marchal)

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SECTORAL POLICIES
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COURT OF JUSTICE OF THE EU
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