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Carbon Border Adjustment Mechanism

Carbon Border Adjustment Mechanism © Image used under the license from Adobe Stock

The European Commission adopted its Communication on the European Green Deal in December 2019. One of the key policies and measures that would be needed to achieve the Green Deal is the proposal for a carbon border adjustment mechanism (CBAM)

This new mechanism would place a carbon price on imports of certain goods from outside the EU, in order to push EU partners to raise their climate ambition and reduce the risk of 'carbon leakage'. This term describes a phenomenon where companies transfer production abroad to countries that have less stringent emission rules in place. Carbon leakage would counteract Europe's efforts to become climate-neutral by 2050, relocating emissions to third countries rather than reducing global emissions.

ENVI adopted the report on 5 February 2021 (58/8/10). Plenary adopted the report on 10 March 2021 (444/70/181)

Rapporteur: Yannick JADOT (Greens/EFA)

Shadows: Adam JARUBAS (EPP), Mohammed CHAHIM (S&D), Pascal CANFIN (Renew), Laura HUHTASAARI (ID), Rob ROOKEN (ECR), Manuel BOMPARD (GUE/NGL)

Committees for Opinion: INTA, ECON (Rule 57), ITRE (Rule 56+), BUDG (Rule 56)


Consideration of draft: 28 Oct 2020

Deadline AMs: 10 Nov 2020

Vote in ENVI: 5 Feb 2021

Vote plenary: 10 Mar 2021