Dhe EU is pressing ahead with its climate agenda unabated despite the energy crisis. Next weekend, the EU Parliament and the Council of Ministers want to decide on tightening the core element of climate policy, emissions trading. The question for the industry is how to keep up in international competition – especially since the USA is relying on the strategy “support instead of demanding” and is providing three-digit billions in aid for green technologies in the Inflation Reduction Act.
The EU therefore wants to create fair conditions at least for the import of goods from third countries: negotiators from the European Parliament and the Council of Ministers had a CO early Tuesday morning2– Border tax agreed. This ensures that non-EU companies are charged a similarly high climate tax as their European competitors for importing their goods into the EU. The amount of the levy is therefore also based on the price of the emission rights – which was last over 80 euros.
The border levy, which is usually abbreviated to CBAM – for Carbon Border Adjustment Mechanism – in Brussels jargon, should initially only apply to a number of products in the most carbon-intensive sectors. These are iron and steel, cement, fertilizers, aluminium, electricity and – on this point the agreement goes beyond the Commission proposal of 2021 – hydrogen. In addition, the output of primary products and also a number of end products are to be recorded. One year before the first duties are due, the European Commission is to name which of these goods should also fall under CBAM.
Cars, chemicals and polymers could be affected
This could affect cars, for example, said the chairman of the environment committee in the European Parliament, the French liberal and former Green, Pascal Canfin. Organic chemicals and polymers could also be included. Indirect CO2emissions are included.
“The message to our industry is clear: there is no need to relocate as we have taken the necessary steps to prevent unfair competition and carbon leakage2emissions,” stressed Canfin on Tuesday in Strasbourg. “We have created an instrument that signals to the world that anyone who wants to sell their products on the European market must pay more attention to the climate from now on,” said CDU MP Peter Liese.
The MEP for the Greens, Michael Bloss, spoke of a “greening of trade policy”. “The border tax protects companies from eco-dumping from third countries and is a catalyst for decarbonization in Europe and worldwide.” The industry itself takes a much more critical view of this. The German Association of the Chemical Industry emphasized that the worry lines are still deep in view of the project and the question marks are large. “Our companies are now faced with a thicket of bureaucratic procedures,” warned VCI Managing Director Wolfgang Große Entrup.
