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Trade versus climate on the edge of the EU


Trade versus climate on the edge of the EU
Written by David Perilli, Global Cement
09 June 2021
Little trickles of detail about the European Union’s (EU) proposed carbon border adjustment mechanism (CBAM) started to emerge last week. The key bit of information that Bloomberg managed to squeeze out of their source was that a transition period with a simplified system is being considered from 2023 and then a full version could turn up in 2026. Cement importers, and those in selected other heavy industries, would be required to buy electronic emission certificates at prices corresponding to those in the EU emissions trading scheme (ETS). Other titbits include: that the prices will be set on a weekly basis based on the average carbon permit price within the EU that week; a default value will be devised for importers who can’t back up their emissions data; and imports from a country with its own carbon pricing schem ....

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