NGOs warn separating carbon border levy could undermine climate action

Posted on 10 March 2022

The Carbon Border Adjustment Mechanism (CBAM) must be linked to the EU ETS discussions so as not to undermine the integrity and ambition of the Fit for 55 package
On 15 March, EU Ministers for the economy and finance will try to find agreement on the implementation of a Carbon Border Adjustment Mechanism (CBAM). The CBAM would be a levy on imports into the EU from certain industries in countries with looser climate rules. 

NGOs support a fair and effective CBAM. This means it should be designed and implemented as an alternative to current EU Emissions Trading System carbon leakage measures such as free allowances and indirect cost compensation.

However, NGOs warn that current plans to agree on a CBAM separately from the EU ETS Directive would be detrimental to its implementation, and risk undermining the level of ambition and decarbonisation incentives of the Fit for 55 package.
In a joint statement, they ask for key safeguards to guide the ongoing negotiations on CBAM.

For more information:
Camille Maury
Policy Officer, WWF European Policy Office
NGOs warn separating discussions on the carbon border adjustment mechanism from the EU Emissions Trading System could undermine climate action
© WWF EPO / Sarah Azau