Negotiators from the European Parliament, the Council of the EU, and the European Commission met in Strasbourg on Tuesday, 4 October, for a second interinstitutional meeting (‘trilogue’) on the carbon border adjustment mechanism (CBAM). Many technical meetings have taken place since the first trilogue in July (see EUROPE 12990/11).
On the agenda for Tuesday’s meeting were the sectors and type of emissions covered by the CBAM as well as its governance. The negotiators do not appear to have set their positions on these different points in stone, according to a source close to the dossier.
However, technical data is needed before agreements can be reached. For example, Member States want to have a better idea of the impact that including polymers and certain organic chemicals in the scope of the CBAM would have.
The European Commission is expected to provide negotiators more data in the coming weeks so that the work can continue, according to two sources.
Possible hybrid governance
A way out seems to be taking shape on the issue of competent authorities responsible for implementing the CBAM: the European Commission had proposed Member States be in charge of collecting the CBAM certificates (see EUROPE 12762/5), but the European Parliament called for [it to be handled by] a central authority managed by the European Commission (see EUROPE 12977/12). Negotiators could agree on an intermediate solution whereby Member States apply the CBAM while the European Commission plays a coordinating role.
The more sensitive topics of phasing out free emissions allowances and export rebates for EU companies are being left aside for the time being. These two issues are closely linked to the regulation revising the emissions trading system (ETS) (see EUROPE 13034/17).
Negotiators still hope to conclude negotiations before the end of the Czech Presidency of the Council of the EU. The next trilogue is expected to take place in early November—before or at the start of COP27. The date of 8 November, mentioned by several sources, could change.
See the ‘three columns’ document presenting the three institutions’ positions: https://aeur.eu/f/3e8 (Original version in French by Léa Marchal)