Researchers urge EU to rethink CBAM as global climate cooperation weakens
The European Union’s flagship Carbon Border Adjustment Mechanism (CBAM) may be ill-equipped to protect European industry in an increasingly fragmented global economy, according to a new study that calls for a major redesign of the policy.
Read MoreEU industrial leaders call for ETS and CBAM ‘recalibration’ to preserve competitiveness
EU industrial leaders have called for a comprehensive rethink of the EU’s Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM) to keep CO2 costs under control, and keep industrial production in Europe as large emitters are weaned off free allowances.
Read MoreBritish industries, manufacturers want UK-EU ETS link-up as soon as possible, say experts
British industries and manufacturers want the UK and EU to tie up their emissions trading schemes as soon as possible, in order to minimise the challenges of navigating two separate, and diverging, markets and border carbon fees, representatives told a House of Lords committee on Tuesday.
Read MoreBiggest EU Parliament party split over CBAM suspension crisis clause
The conservative European People’s Party (EPP), the Parliament’s largest group, is divided over whether to restrict, delete, or broaden a tool that would allow the European Commission to temporarily suspend the EU’s Carbon Border Adjustment Mechanism (CBAM).
Read MoreEU CBAM can spur wider adoption of carbon pricing, researchers say
The EU’s Carbon Border Adjustment Mechanism (CBAM) could drive a significant expansion of carbon pricing beyond Europe, with countries including Canada, Japan, South Korea, and Taiwan likely to introduce their own schemes to avoid paying the bloc’s import fee, according to a new study led by the Potsdam Institute for Climate Impact Research (PIK).
Read MoreMajority of EU importers already including CBAM charge in final cost to customers
Most EU importers are already passing on expected costs from the Carbon Border Adjustment Mechanism (CBAM) to their customers, importers and consultants said at a conference this week.
Read MoreWith CBAM, the emissions data for imports is just as crucial as price -steel distributor
The EU’s Carbon Border Adjustment Mechanism (CBAM) is changing how EU importers select which products to buy, with emissions data transparency becoming as core of an issue as price, the CEO of a major European distributor of stainless steel products told a conference on Thursday.
Read MoreLawmakers disagree on extra climate requirements for access to EU carbon leakage fund
Lawmakers in the European Parliament are poised to clash on whether to introduce additional climate conditions for European companies to access support from the Temporary Decarbonisation Fund (TDF).
Read MoreAmong EU agriculture ministers, Denmark remains a lone supporter of existing carbon price regimes
The fertiliser crisis, driven by the Iran war and rising energy costs, makes clear that defenders of the EU’s carbon pricing regime are increasingly isolated, and scarce – with Denmark alone in clearly backing the ETS and carbon border fee when agricultural ministers met on Tuesday.
Read MoreANALYSIS: Potential EU CBAM-linked Article 6 demand could reach 17 Mt per year, as market questions “arbitrary” cap
Annual demand for Article 6 carbon credits, generated by proposed rules to allow them to be deducted from EU Carbon Border Adjustment Mechanism (CBAM) fees, could theoretically rise to more than 17 million tonnes through 2040, analysts have said, but limitations imposed by Brussels mean that, at least in the near term, buying is likely to be a fraction of that potential volume.
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