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CEMBUREAU welcomes prospect of carbon border mechanism

Published by , Deputy Editor
World Cement,

In a position paper published recently, CEMBUREAU, the European Cement Association, welcomed the prospect of an EU carbon border mechanism, although a number of design principles should apply, namely:

  • In the initial phase, it must be complementary to the EU ETS free allowances.
  • It must be fully WTO-compatible.
  • It must be based on verified emissions from importers to the EU, and include indirect emissions.
  • It must be applicable to all ETS sectors alike.
  • It should provide for a CO2 charge exemption for EU exporters.

Koen Coppenholle, Chief Executive of CEMBUREAU, said, “A carbon border mechanism is a chance to create the level playing field in which our industry needs to help deliver the EU’s carbon neutrality objectives, and further cut CO2 emissions in the EU and beyond.”

“However, it is imperative that any carbon border mechanism co-exists with free allocation under the EU ETS, at least until the end of Phase IV. The replacement of the existing carbon leakage measures by an untested mechanism would create considerable uncertainty and risks for investments in the EU, at a time the industry needs a predictable framework to deliver low-carbon investments.”

“Carbon border mechanisms are complex tools by nature and so it is essential to get their design right. A poorly-designed mechanism could indeed have significant consequences for our industry. CEMBUREAU looks forward to continue working with the European Union on this.”

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European cement news