FEATURE: CBAM sparks turmoil in UK‑EU electricity trade, as importers struggle with traceability
UK electricity generators are struggling to prove the carbon intensity of power exported to the EU – now covered by the bloc’s Carbon Border Adjustment Mechanism (CBAM) – leading to rising cost exposure and trade disruptions only a month after the scheme kicked in.
Read MoreEU-UK ETS linking talks off to bumpy start as thorny regulatory issues come to the fore
Representatives from the EU and Britain will meet for another round of talks on linking their Emissions Trading Schemes (ETS) on Wednesday, but sources have said there are significant areas of disagreement, notably around the UK’s willingness to align its regulation with that of the bloc.
Read MoreSome EU imports face “sizeable” cost hikes due to CBAM, ECB study finds
While the EU’s Carbon Border Adjustment Mechanism (CBAM) is expected to have only a marginal effect on inflation, the European Central Bank (ECB) warns the levy will impose much heavier costs on sectors like iron and steel, or cement in some EU member states, while impacting selected industries in neighbouring countries more heavily.
Read MoreINTERVIEW: Belgian authority still waiting to hear from half of CBAM-covered importers
The Belgian authority responsible for implementing the EU’s carbon border adjustment fee said it has yet to hear from around half of the importers that are expected to be subject to the scheme, even a month after its full startup.
Read MoreEU CBAM draws criticism over military exemptions
The European Union’s Carbon Border Adjustment Mechanism (CBAM) is facing growing criticism from climate and security experts, who have warned that exemptions for military-related imports could undermine efforts to reduce emissions in the defence sector.
Read MoreEU’s chief climate advisor supports linking free EUAs to green investment
The climate policy adviser to European Commission President Ursula von der Leyen has backed the idea of continuing to hand out free carbon allowances to industries under the EU Emissions Trading System (ETS), provided companies invest in cutting their emissions, he told a panel on Thursday evening.
Read MoreIndia’s carbon market could absorb booming biofuels production, IEA says
India’s push to scale up biofuels could feed directly into its emerging carbon market, even as gaps in accounting remain, the International Energy Agency (IEA) said in a report this week.
Read MoreFertiliser exemption risks digging the grave for CBAM, EU Parliament warns
Granting fertilisers an exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM) could have dangerous consequences, lawmakers across different parties warned on Wednesday.
Read MoreUp to 30% of nations’ domestic emissions reductions offset by carbon leakage, review shows
Carbon leakage has been estimated to offset between 5-30% of domestic emissions reductions in most recent studies, according to a new review that proposes a framework for analysing the spillover effects of mitigation efforts.
Read More12 EU member states support fertiliser exemption from CBAM, as Parliament urges caution
While a dozen EU member states support exempting fertilisers from the EU’s carbon border fee, the European Parliament is taking a more cautious line.
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