Left and centre parties in the European Parliament are accusing the right of failing to live up to the EU’s climate ambitions. On Wednesday 8 June, MEPs will vote on the shape of the future Carbon Border Adjustment Mechanism (CBAM). However, compromises were reached on all the points of the text a few weeks ago, during the vote in the Environment, Health and Food Safety committee (ENVI) (see EUROPE 12954/6).
MEPs are still divided on the timing of the exit from free allowances. The rapporteur, Mohammed Chahim (S&D, Netherlands), agreed last week with the Renew Europe group to postpone the total abolition of these free allowances by two years (see EUROPE 12963/8). This setback could allow him to win over some elected representatives from the right. However, the EPP has tabled an amendment to phase out free allowances between 2027 and 2034. “We don’t know if, despite our efforts, the mechanism will work properly, so in the EPP we [...] think that we cannot withdraw the free allowances too quickly”, said the shadow rapporteur on CBAM, Adam Jarubas (EPP, Poland), on Tuesday 7 June.
For those who support an accelerated phase-out of free quotas, the position the right is taking is incomprehensible, according to the rapporteur. MEPs are denouncing intense lobbying by the industry (see other news). “We are using hundreds of millions of euros of public money to continue investing in fossil fuels. Free allowances without conditions are not working as they should, they are not supporting decarbonisation”, said Mohammed Shahim.
The Greens/EFA are all the more disappointed as they were committed to a very rapid exit from these quotas. “I appeal to my colleagues to vote on the text as adopted in ENVI, on a maximum date of 2030 for the end of free quotas”, said Yannick Jadot (Greens/EFA, France) in plenary.
On Wednesday, elected officials will have three options to choose from on this issue: - a phase-out of free allowances in 2030 (as approved by the parliamentary committee); - the compromise between Renew Europe and S&D for an exit in 2032; - the EPP’s position for an end to free allowances in 2034. The vote is expected to be close.
Disagreements on the text also concern the full entry into force of the CBAM. For the right, the transition period should last until 2027 so that importers can adapt before having to pay the famous ‘carbon tax’ in the form of CBAM certificates. The EPP and the Industry Committee (ITRE) have tabled amendments to this effect. The Renew Europe, S&D and Greens/EFA groups support a full entry into force of the mechanism as early as 2025.
The other main principles of CBAM seem to be agreed by the main groups (functioning, scope, use of revenues). The Greens/EFA suggest that the list of products covered by CBAM should be extended somewhat, while remaining within the broad sectors approved in the ENVI Committee. (Original version in French by Léa Marchal)