EU set to have carbon price on certain imports: Now being called for by the Members of the European Parliament (MEPs) that less climate-ambitious countries will have a carbon price on certain imports to raise global ambition on climate change.
It is being supported by MEPs that a carbon price should be put on certain goods that are imported from outside the EU if these countries are not determined enough about climate change.
It is believed that this woud create a global level playing field for both the EU and non-EU industries to decarbonise in line with the Paris climate agreement.
The new machanism should be expanded to a broader EU industrial stragety and cover all imports of products and commodities covered by the EU Emissions Trading System (ETS)
By 2023 following an impact assessment, this should cover the power sector and energy-intensive industrial sectors like, paper,chemicals and fertilisers, cement, aluminium, oil refinery, steel, glass, which continue to receive substantial free allocations and still represent around 94% if the EU industrial emissions.
It is thought that linking the carbon pricing under the CBAM to the price of the EU allowances under the EU ETS will help to combat the carbon leakage but underline the new mechanism must not lead to double protection for EU installations.
“The CBAM is a great opportunity to reconcile climate, industry, employment, resilience, sovereignty and relocation issues. We must stop being naïve and impose the same carbon price on products, whether they are produced in or outside the EU, to ensure the most polluting sectors also take part in fighting climate change and innovate towards zero carbon.” said French Parliament Rapporteur Yannick Jadot
“This is our best chance of remaining below the 1.5°C warming limit, whilst also pushing our trading partners to be equally ambitious in order to enter the EU market.”
This commission is expected to present a legislative proposal on the CBAM in the second quarter of 2021 as part of the European Green Deal, as well as a proposal on how to include the revenue generated to finance part of the EU budget.
EU set to have carbon price on certain imports