European Parliament votes to reinforce carbon leakage measures

Thursday, 11 March 2021 14:54:31 (GMT+3)   |   Istanbul
       

The European Steel Association (EUROFER) has stated that the European Parliament has voted on its Carbon Border Adjustment Mechanism (CBAM) resolution, prior to a legislative proposal expected to be published by the European Commission in June this year. Parliamentarians agreed on the principle that the EU’s higher climate ambition requires improved carbon leakage protection.

According to EUROFER, the transition to low-carbon technologies will be successful only under the right market conditions facilitated by effective carbon leakage measures. The carbon border measure must fill the gap of the carbon cost differential with global competitors and imports instead of replacing or reducing current levels of carbon leakage protection.

“A carbon border measure complementary to existing carbon leakage measures would decrease the product price impact on downstream sectors within the EU. This would better preserve the entire value chain. It would also reduce the direct impact on trade flows and mitigate trade tensions, providing a longer transition for negotiations over how other regions can follow Europe’s decarbonization lead,”  Axel Eggert, director general of EUROFER, said.


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