On Tuesday 16 December, the European Commission is due to present its proposals for extending the scope of the Carbon Border Adjustment Mechanism (CBAM) to certain “downstream” products, i.e. finished or semi-finished goods. According to the information available at this stage, the Commission wants to focus mainly on finished products rich in aluminium and steel. A temporary support mechanism will also be presented on Tuesday the 16th. This should further prevent carbon leakage. Stakeholders have long called for export credits, but as this option is difficult to justify to the World Trade Organization, the Commission could turn to financial support for “decarbonisation” to compensate for the losses linked to CBAM and the end of free carbon quotas or Emissions Trading System (ETS).
In addition to these new proposals, the Commission still has to publish two delegated acts relating to the implementation of CBAM, including one - of which Agence Europe received a copy - which sets the definitive default values for products subject to CBAM.
To see the draft delegated act on default values: https://aeur.eu/f/JYL (LM)