The approval today by the EU Parliament of the report ‘A WTO-compatible EU carbon border adjustment mechanism’ provides the Commission with important guidance in the EU's work towards our objective to make Europe climate neutral by 2050 at the latest. The Carbon Border Adjustment Mechanism (CBAM) is an important mechanism, which, in the framework of the European Green Deal, will stimulate industry to invest in green solutions and will prevent unfair competition from outside the EU.
S&D shadow rapporteur, Mohammed Chahim MEP, stated:
“We need a level playing field. If you want your products to enter the European market, you need to embrace our climate standards. This is the very first goal of this carbon border adjustment mechanism: decreasing global CO2 emissions.
“As social-democrats we demand transparent and predictable conditions, so that industry – in and outside the EU – can adjust and get ready. Therefore we need a gradual, yet rapid, phase-out of the free allowances within the Emission Trading System (ETS), once the CBAM is introduced. We count on the Commission to bring clarity on this matter.
“We will be working hard in the coming year to pass all the climate legislation from the ‘Fit for 55 package’ to reduce emissions by at least 55% by 2030, including the legislative proposal for a carbon border adjustment mechanism. The message is clear: we want the Commission to come up with an ambitious proposal that sets the EU on the right side of history when it comes to fighting climate change.”
S&D co-ordinator in the environment committee, Jytte Guteland MEP, said:
“The EU is the world's largest carbon importer, with net imports of goods and services in the EU representing more than a fifth of the Union’s domestic CO2 emissions. Obviously, this hampers our fight against climate change and undermines the important measures to reduce our greenhouse-gas emissions.
“The introduction of a carbon border adjustment mechanism can be the missing piece of the puzzle in the efforts to reduce emissions, but also to ensure that the responsibility to halt climate change is also shared by other actors beyond the EU.
“This is about Europe showing leadership and doing what is right.
“Far from being a hidden tool to enhance protectionism, unjustifiable discrimination or restrictions, the CBAM can turn out to be a great asset, both for the climate and as a strong economic incentive to develop production methods with a lower greenhouse-gas footprint, and can spur investments in innovation and new technologies. This is what the Commission should consider before making any legislative proposal.”