It is an environmental protectionist measure that aims to tax imported emissions at the European carbon price and to reduce the risks of relocation to “free-riding” countries.
On 22nd of June, the European Parliament voted to create a carbon border adjustment mechanism.
The creation of this border carbon tax is one of the new tools of the Fit for 55 package which should enable Europe to achieve carbon neutrality by 2050 at the latest. It is an environmental protectionist measure that aims to tax imported emissions at the European carbon price and to reduce the risks of relocation to “free-riding” countries.
The amended text goes further than initially envisaged. It includes in the scope of application goods from the steel industry, the refining sector, the cement sector, the aluminium sector, the organic basic chemicals sector, the hydrogen sector, the polymers sector and the fertiliser sector.
The carbon cost of imported emissions will be paid by the exporter, based on the average weekly price of European allowances and taking into account any carbon cost already paid in the country of origin.
The regulation commits the Commission to undertake the creation of an international climate club or “carbon club” which could be placed under the governance of an institution such as the WTO or the OECD which are already open in favour of this principle.
About Positivéco
At Positivéco, we see the new national and international regulations on CSR as an opportunity for positive growth.
Our aim: to apply financial and commercial skills to structure projects outside the traditional silos.
Since 2009, we have been supporting climate investment and development aid projects; we evaluate CSR policies and carry out extra-financial reporting for our clients. Positivéco advises financial institutions, public actors, listed and non-listed companies.
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Who we are
With Positivéco, your success is our priority. Since our conception, we have always applied financial and commercial expertise outside the traditional silos, to structure successful and impactful client projects. This improves the visibility of your activities for enhanced profitability and increases your financial valuation.
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