MEPs, meeting in plenary session, on Wednesday 10 March voted in favor of the motion for a resolution on the carbon border adjustment mechanism. This mechanism would impose the same carbon price on products manufactured inside and outside the European Union (European Union).
For example, an international cement company wishing to export to the European Union would have to demonstrate the carbon intensity of this production. If this were higher than the intensity imposed on European companies, it would have to pay dues. Otherwise, it would be exempt. One way to encourage the most polluting industrial sectors (producers of steel, aluminum, chemicals, fertilizers, etc.) to reduce their greenhouse gas emissions.
The motion for a resolution, supported by French parliamentarian Yannick Jadot (Greens / European Free Alliance), was approved with 444 votes in favor, 70 against and 181 abstentions. Among these abstentions was … Yannick Jadot himself. Indeed, the rapporteur wanted this new mechanism to eventually abolish the free allowance system on the carbon market.
Currently, European companies have to buy allowances to cover their carbon emissions. But these allowances can also be offered to them to avoid “ carbon losses “, i.e. relocations to countries with less stringent environmental standards. In September 2020, the European Court of Auditors estimated in a report that these free quotas were not effective.
The European Commission will present a bill in June
This is why many MEPs were advocating a carbon border adjustment mechanism to replace free quotas. But right-wing MEPs (with the exception of French parliamentarians from the Les Républicains group), worried about the future of European industries, finally voted against the abolition of free quotas.
“ The Greens /ALE has chosen to abstain, tweeted the account of the European Ecology MEPs – The Greens (EELV). Not that we suddenly became opposed to the carbon adjustment mechanism at the borders, but because it has been emptied of its substance. “
This report should open the discussion: the European Commission will present a legislative proposal in June, following an impact study that will be published in the spring. “ When the European Commission publishes its legislative proposal, we will be vigilant and active for this paragraph [sur la suppression des quotas gratuits] be reinstated “, MEPs continued EELV in another tweet.
This carbon regulation mechanism could come into effect on 1er January 2023. Studies have estimated that this carbon adjustment mechanism would generate each year turnover from 5 to 14 billion euros. These should be used to finance policies to combat climate change. “ A part “ revenue would be allocated to countries “ less developed “ is “ more vulnerable “ to climate change.
- Source: Reporter
- Photo: PxHere (CC0)