The Council of Europe has taken another step towards the introduction of a carbon duty CBAM shutterstock

The Council of Europe has taken another step towards the introduction of a carbon duty CBAM

In parallel, the number of free carbon permits for European companies will be reduced by 25%

The Council of Europe has approved a common approach to the issue of introducing the Carbon Border Adjustment Mechanism, which should be operational in 2026.

This is reported on site Council.

In accordance with the decision of the European Council, the registration of importers of products subject to carbon tariffs will take place at the EU level. Previously, it was assumed that such lists would be compiled in national jurisdictions.

It is planned to remove small consignments with a total value of less than 150 euros from the effect of carbon tariffs. According to the European Commission, they account for about a third of the goods entering the EU, at the same time, their cumulative share in carbon dioxide emissions is negligible.

The European Council confirmed that, in parallel with the introduction of carbon tariffs, the number of free carbon emissions permits for European companies will be reduced by 25% during 2026-2030. This is a very sensitive issue for European steelmakers, as the measure is expected to further increase the cost of permits.

It is reported that consultations with European industrialists will continue on this issue.

CBAM will cover imports of products from the following sectors: cement, aluminum, fertilizers, power generation, iron and steel.

The new mechanism provides for the introduction of tariffs on the so-called "carbon footprint" from the import of these types of products. Their size will be linked to the cost of carbon emissions permits in the European EU ETS system. Now it is about 75-80 euros per ton.

Tags: ,
Related
NDC2 for Ukraine: another ambitious failure or a chance to attract investment?
NDC2 for Ukraine: another ambitious failure or a chance to attract investment?

Unfortunately, there was no constructive dialog

Ministry of Economy is preparing a request to the European Commission to postpone CBAM for Ukraine – Kachka
Ministry of Economy is preparing a request to the European Commission to postpone CBAM for Ukraine – Kachka

Last summer, Ukrainian industry groups called on the authorities to ask the EU to apply the CBAM approach only to reporting for Ukraine during martial law and early reconstruction

European Parliament supports the European Commission's proposal to simplify CBAM
European Parliament supports the European Commission's proposal to simplify CBAM

The next stage is negotiations with the EU Council

EU and UK agree to combine their own ETSs
EU and UK agree to combine their own ETSs

This is a key step in post-Brexit climate cooperation