We support the European Commission’s proposal for a targeted scope extension to CBAM-intensive downstream products to ensure an effective level of protection of users of CBAM goods who manufacture products made primarily from CBAM goods (so-called derivatives).
The Commission proposed an extension to selected steel- and aluminium-intensive downstream products based on a carbon leakage risk assessment. This should be complemented by a value chain approach to include all CBAM-intensive goods along the value chains of identified products (e.g. also including fridge doors when fridges are covered) and along strategic value chains (e.g. steel-intensive products in automotive, energy, infrastructure, cleantech) in close collaboration with concerned manufacturers.
Furthermore, the Commission proposal opens the door to use default values ‘by default’ for downstream products. This is understandable as it is extremely difficult to obtain actual emissions from complex value chains. To ensure the CBAM’s environmental integrity, it is good that the Commission will not apply punitive markups to these products.
About the Business for CBAM Coalition
The Business for CBAM Coalition brings together businesses and business associations committed to upholding the ambitions of the Carbon Border Adjustment Mechanism (CBAM) and consequently of the EU Emissions Trading System (ETS). These policies are essential – not only for the EU’s path to cost-effective decarbonisation, but also for securing the long-term competitiveness of European industry in a rapidly evolving global economy.
Contact the secretariat via info@businessforcbam.eu