Answer given by Mr Gentiloni on behalf of the European Commission

2.12.2021

The Carbon Border Adjustment Mechanism (CBAM) is a climate measure of the European Green Deal and is aimed at fighting climate change by reducing greenhouse gas emissions in the EU and globally .

It is designed to ensure imported goods are subject to an equivalent carbon price as goods produced in the EU, addressing the risk of carbon leakage and supporting the climate ambition in the EU and globally.

Since the level of the CBAM obligation will be assessed on the actual declared carbon content of those imported goods, it may encourage third country producers to reduce their own carbon footprint. Furthermore, since credit will be given for a carbon price paid in the third country, it may also encourage them to introduce carbon pricing measures of their own.

The EU should welcome that third country producers export products of low-emission intensity to the EU. Nevertheless, the manipulation of carbon accounting to assign emissions of a production site only to products not destined to the EU would be wrong.

Rules foreseen in the Commission’s proposal, to be further detailed in secondary legislation, on how to establish the carbon content of imported products will not allow for such a manipulation.

The CBAM proposal does not provide for the introduction of export rebates. The introduction of CBAM will take place according to a very prudent schedule where progressively over a ten-year period, starting in 2026, the CBAM will replace the free allocation of allowances under the EU Emissions Trading System in the CBAM sectors.