EU carbon border mechanism to require surrender of certificates: draft proposal

摘要

A proposed EU Carbon Border Adjustment Mechanism will require companies importing carbon-intensive goods into Europe to surrender certificates based on their carbon content, according to a leaked draft legislative proposal seen by S&P Global Platts. Companies will be required to make a CBAM declaration setting out the embedded CO2 emissions in imported goods for each calendar year, according to draft documents. The documents come ahead of an expected legislative proposal for a CBAM by the European Commission in July, in a controversial move that seeks to protect EU-based industries from carbon leakage – the risk of moving operations to avoid carbon costs. The CBAM seeks to level the international playing field by protecting industry from competitive distortions linked to European carbon prices while also encouraging other countries to adopt equivalent climate protection policies.