European Roundtable on Climate Change
and Sustainable Transition
REPORT: Border Carbon Adjustments in the EU: Issues and Options
This report brings together the main takeaways from the project ‘Border Carbon Adjustments (BCAs) in the EU: Issues and Options’ launched in November 2019 to provide analytical input and foster an informed debate with domestic and international stakeholders as the CBAM file progresses through the early stages of the legislative process.
Drawing on extensive feedback obtained in a series of stakeholder consultations, the report offers a detailed analysis of the building blocks of BCAs as a policy option in the European context, discusses alternative policy options, and considers different combinations of policy instruments to achieve the desired outcomes.
This report is one of the deliverables of ERCST's project "Border Carbon Adjustments in the EU: Issues and Options”, which was made possible by support from Enel, Eurofer, FuelsEurope, the Government of France, the Government of Germany, HeidelbergCement, Metinvest, and Solvay.
ERCST's organises panel on BCA's at Carbon Forward 2020 Online Conference
14-15 October 2020
ERCST is supporting Carbon Forward 2020 by organising a panel on the topic of the EU's Carbon Border Adjustment Mechanism on the second day, moderated by our Executive Director, Andrei Marcu will join and moderate a panel on the second day, on the topic of the EU's Carbon Border Adjustment Mechanism.
Carbon Forward 2020, Carbon Pulse and Redshaw Advisors' annual flagship 2-day environmental markets event, will bring together carbon market expertise and talent from across the governmental, finance, energy, transport and aviation sectors to show you the way. Delegates will join those experts to discuss the risks and opportunities associated with constantly evolving climate change landscape.
ERCST's Director Andrei Marcu speaks at Eurelectric Webinar: ETS evolution and its impact on fuel switching
7 October 2020, 11:00 - 12:30 CET
Eurelectric together with ICIS will bring together leading policy makers, senior business executives and high-level experts for an on-line, interactive and thought-provoking discussion on the evolution of the ETS during the fourth trading period. The webinar will aim to evaluate the impact of the ETS and carbon pricing on fuel switching in the context of the EU 2030 greenhouse gas targets and the path to climate neutrality up to 2050!
ERCST's Executive Director, Andrei Marcu, will join the panel.
Bloomberg Green writes about ERCST's report on border carbon adjustments in the EU
Bloomberg Green, 29 September 2020
EU could add cement, power imports to ETS in initial border measures - study
Designing a carbon border tax that both works and complies with World Trade Organization rules is a major challenge. The European Roundtable on Climate Change and Sustainable Transition, a research group in Brussels, consulted lawmakers, EU trading partners and affected industries and set out its outlook in a major study of the options policy makers could adopt.
It expects a price should be put on imports of emissions-intensive goods, exemptions to be granted for the poorest nations and funds raised by the levy diverted to help pay for Europe’s green economic recovery.
“The mechanism will require a broader framework and is no silver bullet on its own,” said Andrei Marcu, one of the authors of the study published by the European Roundtable on Climate Change and Sustainable Transition. “Starting in 2024-2025 we could see some sort of a pilot program. I hope it will be a weapon that the EU will never have to use.”
Third article of the Marcu My Words series with Carbon Pulse
Carbon Pulse, 15 September 2020
The vision for the EU ETS in the 2030 framework - will it be up to the challenge?
At a minimum, a vision to what the ETS role is beyond 2030 needs to be provided, as it moves into “mid-life”. It is not young anymore.
A second requirement is that a vision is needed on how it will help industry decarbonise, without deindustrialising Europe, as it did for the power sector. The roles of the different tools, including the ETS, CBAM, consumption charges, contracts-for-difference, standards, etc. needs to be articulated, as well as how these tools will function together.
What we do not need is a review that has vague and general objectives – which only keeps everyone from objecting. The 55-60% target is clear, hard and challenging. The same level of clarity is needed in setting objectives and in defining what is needed in terms of changes to existing tools, and new tools if necessary.
Second article of the Marcu My Words series with Carbon Pulse
Carbon Pulse, 29 June 2020
Carbon Leakage and Competitiveness - different objectives different tools
In its feedback to the Inception Impact Assessment, ERCST, while not opposed to a BCA, has made clear its concerns about this approach: ERCST “would, in the course of the examination of how to address carbon leakage, urge a more open debate, with border carbon adjustments being one option. Other options, which may be complementary to BCA, should not be disregarded, including the creation of a framework that will lead to a market for low carbon products. Without such a market the tools available to the EU to implement the EU Green Deal will be incomplete”.
The recent report in Carbon Pulse of a statement signed by four countries, who, while also supportive of a BCA, question the total focus on BCA only, seems to vindicate this view. Germany, Belgium, Czechia and Hungary state in a recent letter that “an exchange of all possible mechanisms for protecting against carbon leakage among the member states is necessary in order to clarify the various open questions such as WTO compatibility or administrative feasibility”.
2020 State of the EU ETS Report
The yearly State of the EU ETS Report aims to be an independent contribution to the policy debate, which is needed to ensure that the EU ETS is “fit for purpose.”
It is intended as a “snapshot”, providing policymakers and stakeholders with an overview of how the EU ETS is doing by April of each year, based on previous year data.