The future carbon border adjustment mechanism should be designed in such a way as to address the risk of carbon leakage while fully complying with World Trade Organization rules, maintaining the competitiveness of the European industry and rewarding contributions to a low-carbon Europe.
Euromines welcomes a European Green Deal to put Europe on the right track to a sustainable future and is prepared to take the necessary measures and bring its value added to making Europe the world’s first climate neutral continent.
With regards to the Carbon Border Adjustment Mechanism (CBAM), Euromines agrees that such a new instrument should be designed in a way that addresses the risk of carbon leakage while fully complying with World Trade Organization rules, maintaining the competitiveness of the European industry and rewarding contributions to a low-carbon Europe. In this context, we are ready to bring our value added to the current in depth assessment aimed at identifying the most efficient instrument that will complement the Emissions Trading System and counteract the risk of carbon leakage by putting a carbon price on imports of certain goods from outside the EU.
Raw materials are essential to Europe’s survival as one of the world’s leading economies. The mineral raw materials industry has invested heavily in the EU in recent years and has the potential to contribute further to the recovery strategy through development of new projects and extensions to existing ones. The first segment of most value chains, the raw minerals sector is a supplier of critical materials and products to many sectors of the economy and secures the availability of essential materials needed for a climate neutral, service and welfare orientated, circular and resource efficient economy.
While, at this point in time, Euromines has not adopted an industry position for nor against a specific Carbon Border Adjustment Mechanism (CBAM), we hope that the EU Emissions Trading System will continue to be the key market-based instrument for the industry with free allowances providing the key stimulus for industry installations and indirect costs continuing to be reimbursed.