EU suppliers to bear carbon footprint cost
Author: Alden M. Monzon
According to the EU Commission, the CBAM is meant to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, as well as to encourage cleaner industrial production in non-EU countries. The trade association said that Aaron Cosbey of the International Trade Centre had told them that a number of emission-intensive goods, including electricity, would be covered by the EU Commission’s proposal on the CBAM. “By confirming that a price has been paid for the embedded carbon emissions generated in the production of certain goods impod into the EU, the CBAM will ensure the carbon price of imports is equivalent to the carbon price of domestic production, and that the EU’s climate objectives are not undermined,” said the EU Commission. The commission said the CBAM would initially apply to imports of certain goods whose production was deemed as carbon-intensive and at most significant risk of carbon leakage. These include cement, iron and steel, aluminum, fertilizers, electricity and hydrogen.