MEPs support the introduction of CBAM to place a carbon price on imports

MEPs support the introduction of a WTO-compatible CBAM to place a carbon price on imports of certain goods from outside the EU, if these countries are not ambitious enough about climate change.

 

On Friday, February 5, the Committee on Environment, Public Health and Food Safety adopted a resolution on a WTO-compatible EU carbon border adjustment mechanism (CBAM), the idea of which is to introduce a tax on imports of goods, the production of which causes large emissions of CO2.

This would create an incentive for EU and non-EU trade industries to decarbonize in line with the Paris Agreement objectives.

The CBAM should be part of a broader EU industrial strategy and cover all imports of products and commodities under the EU ETS. In addition, by 2023, and following an impact assessment, it should cover the power sector and energy-intensive industrial sectors like cement, steel, aluminium, oil refinery, paper, glass, chemicals and fertilisers, which continue to receive substantial free allocations, and still represent 94 % of EU industrial emissions.

Plenary is set to vote on the resolution in its session 8-11 March 2021. The Commission is expected to present a proposal in the second quarter of 2021.

Press release on the European Parliament website.