On Monday 8 and Tuesday 9 March, a report on the carbon border adjustment mechanism will be put to the vote of the Members of the European Parliament.
But what would this mechanism consist of ? It would impose a carbon tax on imports from the European Union (European Union). In fact, theEuropean Union emits more and more greenhouse gases by consuming products and services not produced within the Union. These imports account for over 20 % of emissions CO2 of the Union.
“ L’European Union it must impose the same carbon price on products manufactured inside and outside theEuropean Union so that even the most polluting sectors do their part in the fight against climate change, and innovate to move towards zero carbon emissions “MEP Yannick Jadot, rapporteur for the text, said in a press release.
All the more so since the twenty-seven Member States of the European Union had pledged to raise their greenhouse gas reduction targets by at least 55 % by 2030 (compared to 1990 level), at the European Council in early December 2020.
The future mechanism proposed in the report will cover carbon emissions from materials such as concrete, steel, aluminum, as well as chemicals and fertilizers. These sectors are estimated to account for 94 % of industrial emissions in the European Union.
No “ unfair competition “OR” discrimination “
What form will this adjustment mechanism take? ? “ All options are still open “, Yannick Jadot said on March 3 during a press conference followed by Reporter. Among those foreseen: a tax on consumption, paid by citizens ; or a customs duty, i.e. a tax on goods. “ The most likely option will be that of a mirror system with the European directive ETS [marché carbone européen où les industries achètent un quota carbone pour émettre une tonne d’équivalent CO2] Said MEP Jadot. Importers would have to buy quotas, at the price of the European system. The text rapporteur guarantees that there will not be “ unfair competition “ between Union producers and trading partners in other countries, nor “ discrimination “.
An example: an international cement company wishing to export to the European Union should 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.
Revenue assigned to countries “ more vulnerable »To climate change
Studies have estimated that this carbon adjustment mechanism would generate € 5 to € 14 billion in revenue each year. 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.
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. This carbon regulation mechanism could come into effect on 1er January 2023.
- Source: Reporter
- Photo: PxHere (CC0)