Two weeks ago we co-hosted an important meeting on the European Union's Carbon Border Adjustment Mechanism (CBAM) a policy designed to address climate change by imposing a carbon tax on certain imported goods.
One of the main speakers Vicente Hurtado Roa, Head of Unit, DG TAXUD, European Commission provided insights elaborating on the execution of CBAM so far as pointed out below:
- Transitional Phase as a Learning Period: The transitional phase, which began in October 2023, serves as a learning period for all stakeholders.
- Implementation Challenges: Key challenges identified include ensuring compliance among importers and exporters, reducing administrative burdens etc.
- Engagement with Stakeholders: The European Commission has been actively talking to various stakeholders, including industry associations and trade groups, to address concerns and clarify the CBAM implementation.
- CBAM targets imports of carbon-intensive products such as steel, cement, aluminum, fertilizers, electricity, and hydrogen.
- Alignment with International Policies: CBAM is designed to align with the EU's international policies and legal commitments, including compatibility with World Trade Organization (WTO) rules and agreements under the United Nations Framework Convention on Climate Change (UNFCCC).
This is just one presentation in a really dynamic event which also featured presentations and interventions from:
- Joost Pauwelyn, Geneva Graduate Institute
- Chantal-Line Carpentier, UNCTAD
- Inès Van Lierde, AEGIS Europe Chair
- Renaud Batier, AEGIS Europe Co-President
- Aashish Chandorkar (Indian Mission to the WTO)
- Ben Rake (UK Mission to the WTO)
- Adolfo Aiello (Eurofer)
For detailed insights on CBAM, check out our previous recording on our UA-cam channel.
CHAPTERS:
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0:00 Intro
0:52 Updates from the transitional period from October 2023 - 2024
6:11 Data from the transitional period
9:36 Detailed plan and implementation of CBAM
11:22 Challenges of CBAM implementation
14:01 Beginning of Q&A session
14:10 Question about CBAM extending to other sectors
17:12 Question on downstream goods
18:49 Question about the 2024 CBAM report
19:58 Question about companies adhering to EU methodology
23:01 Question about the involvement of investors
25:41 Question about carbon pricing
30:00 Question on the quality of the data
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