Public consultation on EU Carbon Border Adjustment Mechanism open until October 2020
The European Green Deal emphasized that “should differences in levels of ambition worldwide persist, as the EU increases its climate ambition, the Commission will propose a carbon border adjustment mechanism, for selected sectors, to reduce the risk of carbon leakage”. Risk of carbon leakage means either that production is transferred from the EU to other countries with lower ambition for emission reduction, or that EU products are replaced by more carbon-intensive imports. If this risk materialises, there will be no reduction in global emissions, and this will frustrate the efforts of the EU and its industries to meet the global climate objectives of the Paris Agreement. A Carbon Border Adjustment Mechanism (CBAM) would ensure that the price of imports reflects more accurately their carbon content. This measure will be designed to comply with World Trade Organization rules and other international obligations of the EU. This measure would be an alternative to the current free allocation of allowances or compensation for the increase in electricity costs that address the risk of carbon leakage, because of carbon pricing in the EU’s Emissions Trading System (ETS). In this context and in line with Better Regulation principles, the Commission has decided to launch a public consultation designed to gather stakeholders’ views on the Carbon Border Adjustment Mechanism. The aims of this consultation are:
• To give all citizens and organisations the opportunity to inform policy development
• To gather citizens’ opinion on policy options and their possible impacts
• To identify opportunities and challenges in relation to the future Carbon Border Adjustment Mechanism.