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CBAM: questions and answers about article 27
The EU Commission published the following Q&A: The potential application of new Article 27a of the CBAM Regulation Q1. What could the Commission do if CBAM has a severe impact on the price of goods? A1. The CBAM Regulation does not currently allow for the suspension or removal of goods from the scope of application of the measure. Any modification of the list of goods would require an amendment of the Regulation after agreement of the European Parliament and the Council. Therefore, the Commission has included, as part of the proposal adopted last 17 December, a new Article 27a would allow the Commission to remove goods temporarily from the list…
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CBAM ,climate mitigation, Q&A
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. In this documenti t is analysed the following topic: “…How will you engage with third countries and industry going forward?…”. The answer is that: “… When preparing the CBAM proposal, the Commission already consulted stakeholders widely, both through an open public consultation and more targeted consultations. In addition, the Commission engaged in extensive bilateral consultations with public authorities in EU and non-EU countries, business associations, individual companies and NGOs. Targeted consultations were also undertaken with senior managers and associations from the basic materials sectors, manufacturers, NGOs and policymakers. During this transition period we…
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ETS, CBAM and carbon leakage
The European Commission in its memo published on May 2023 answers to this question: “…Isn’t carbon leakage already addressed by the Emissions Trading System?...” in the following way: “… The EU’s Emissions Trading System (ETS) is the world’s first international emissions trading scheme and the EU’s flagship policy to combat climate change. It sets a cap on the amount of greenhouse gas emissions that can be released from industrial installations in certain sectors. Allowances must be bought on the ETS trading market, though a certain number of free allowances is distributed to prevent carbon leakage. That system has been effective in addressing the risk of leakage, but it also dampens…
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EU, Carbon Border Adjustment Mechanism: how it does work?
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. The second question is “How will the CBAM work?…” The answer is “…Designed in compliance with World Trade Organization (WTO) rules and other international obligations of the EU, the CBAM system will work as follows: • As from the CBAM’s entry into force in 2026, EU importers will buy carbon certificates corresponding to the carbon price that would have been paid, had the goods been produced under the EU’s carbon pricing rules; Conversely, once a non-EU producer can show that they have already paid a price for the carbon used in the production…
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UE, CBAM Question and answers
The European Commission released on 10.05.2023 a memo with “Questions and Answers: Carbon Border Adjustment Mechanism (CBAM)”. The first question is “…Why is the EU putting in place a Carbon Border Adjustment Mechanism?…” The EU is at the forefront of international efforts to fight climate change. Indeed, the EU Commission added “…The European Green Deal set out a clear path towards realising the EU’s ambitious target of a 55% reduction in carbon emissions compared to 1990 levels by 2030, and to become a climate-neutral continent by 2050. In July 2021, the Commission made its Fit for 55 policy proposals to turn this ambition into reality, further establishing the EU as…