European Parliament delays decision to introduce carbon border tax – CBAM

European Parliament delays decision carbon border tax CBAM

Photo: Guillaume Périgois on Unsplash


June 8, 2022






June 8, 2022





In a surprise vote, members of the European Parliament rejected a set of law proposals within the Fit-for-55 climate package, including the assembly’s position on negotiations to introduce the Carbon Border Adjustment Mechanism – a carbon tax for imported commodities and electricity.

The revision of the European Union’s Emissions Trading System (EU ETS) is on hold for now. The European Parliament voted against the proposal to include other sectors of the economy like buildings and shipping and increase the scope of the scheme to a total of 61% of greenhouse emissions in the EU, from the current 43%.

Namely, the original motion was to adopt 67% as the negotiating position, but a compromise to ease the rule was later achieved. In turn, it led the social democratic and green groups – who are in favor of a more ambitious target – and the far right to withdraw support.

The failure of the main proposal took down the CBAM and Social Climate Fund legislation with it

The motion was then returned to the relevant committee for further discussions. The surprise outcome also spelled failure for the legislation on the related introduction of the Carbon Border Adjustment Mechanism or CBAM – essentially a carbon tax for imported commodities and electricity, and the Social Climate Fund, which would use revenues from the EU ETS to assist the vulnerable population.

The key part of the legislation was supposed to lead to a cut in the number of carbon emission allowances by 70 million in 2024 and 50 million in 2026. The European Commission originally proposed to pull out 117 million carbon credits in 2024. The Fit-for-55 package is envisaged to reduce emissions by 2030 by 55%.

The European Parliament adopted a negotiating position that all new cars and vans will need to have zero emissions by 2035 at the latest

The CBAM is likely to impact countries like the Western Balkans and Turkey financially. The scheme is supposed to pressure them to accelerate decarbonization, particularly in the energy sector, as it affects electricity production and energy-intensive industries, including steel and cement.

In a separate plenary vote, MEPs adopted their position on proposed rules to revise the CO2 emissions performance standards for new cars and vans. With the adopted text for negotiations with member states, they supported the measures designed by the European Commission to reach zero emission road mobility by 2035. Intermediate emissions reduction targets for 2030 would be set at 55% for cars and 50% for light commercial vehicles.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

City of NiS starts development of Energy Transition Roadmap until 2050 tender

City of Niš in Serbia to develop Energy Transition Roadmap until 2050

26 September 2022 - The local team in charge of the project is seeking an experienced consultant to support the work, the deadline for offers is October 4

EU wastes more food than it imports

EU wastes more food than it imports

26 September 2022 - At a time when 33 million citizens of the European Union cannot afford enough meals,...

Slovenia calls for suggestions for draft climate change law

Slovenia calls for suggestions for draft climate change law

22 September 2022 - Slovenia is drafting the Climate Change Act to create a legal framework for implementing climate policy and reporting on all its aspects

Diverge opinions on wind farm construction in Brajići above Budva

Controversy over wpd’s wind farm project in Brajići in Montenegro

19 September 2022 - The government said it is working on a spatial planning document while the locals want the wind farm project to be moved to another location