skip to Main Content Advocates Rapid Implementation Of A Carbon Border Adjustment Mechanism To End Unfair Competition advocates rapid implementation of a Carbon Border Adjustment Mechanism to end unfair competition

Brussels –, the European Sustainable Business Federation, welcomes the European Commission’s commitment to a Carbon Border Adjustment Mechanism. Rapid implementation is crucial to put an end to unfair competition to EU producers from the imports of carbon-intensive products, produced in countries outside the EU that slip behind with their Paris Agreement goals. 

On 16 September, President Ursula von der Leyen reconfirmed her ambition to achieve additional carbon emission reductions of 55% by 2030, including the intention to work on a Carbon Border Adjustment Mechanism (CBAM). After years of incremental and insufficient change, the EU finally seems to walk the talk to raise Europe’s and our partners’ climate ambition., the European Sustainable Business Federation, welcomes this high priority given to the climate. advocates rapid introduction of the CBAM as a complementary measure to the EU Climate Law, and as part of further strong EU climate policies.

The CBAM is crucial to create a level playing field on the EU market for all producers, put an end to unfair competition from abroad, prevent carbon leakage, and create a strong EU market for low-carbon circular products and services. The latter also ensures that the investments foreseen under the EGD will yield a Return on Investment. In addition, it will enable full accounting of damaging carbon emissions in products and an increasingly high carbon price, and speed up the deployment of zero-carbon technologies.

Arguments by industry stakeholders against a CBAM are in our opinion either invalid, or reflect perceived risks that can be managed and are outweighed by far by the benefits. For instance, to avoid trade wars, recommends to re-invest the funds raised by the policy from countries exporting to the EU in those same countries into measures reducing their carbon emissions. Importer’s claims for an exemption or low CBAM tariff could be checked by regular, random, on-site, unannounced verification by independent third parties. International standards are unambitious and form no alternative.

To minimise additional red tape for SMEs, a mandatory gate-to gate Life Cycle Analysis (LCA) for all companies, including SMEs, although special attention may be needed for the smallest ones. With respect to the various options considered to realise the CBAM, advocates to implement the simplest option that can be legally realised without risking a veto in the European Council, preferably by extending the EU ETS.

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