The think tank Europe Jacques Delors has welcomed the adoption in the European Parliament of the report by Mohammed Chahim (S&D, Netherlands) on the Carbon Border Adjustment Mechanism (CBAM). The text takes up most of the recommendations made by the think tank (see EUROPE 12895/5).
In contrast, the introduction in the report of an export rebate for European companies affected by CBAM represents “a black spot” in the European Parliament’s position, according to Europe Jacques Delors. It warns that this measure is incompatible with World Trade Organization (WTO) rules. “Export rebates are only legal under WTO law when they are linked to taxes on goods. In the present case, the ETS is not a tax, but a market-based regulation”, say the authors of a note published on Thursday 23 June.
Furthermore, the extension of the scope to include indirect emissions, as well as the polymer and organic compound sectors, is “very ambitious”, according to Europe Jacques Delors, who recommends instead a revision clause to broaden the scope.
See the Europe Jacques Delors publication: https://aeur.eu/f/2av (Original version in French by Léa Marchal)