Since 2019, ERCST has built up solid experience on BCAs and carbon leakage issues in the EU context. The ERCST Team has accompanied the CBAM file from its earliest stages in the legislative process, providing analytical input to the discussion on BCAs and fostering an informed debate with domestic and international stakeholders.

One of the crunch issues identified by ERCST is the inclusion of indirect (scope 2) emissions in the scope of the CBAM. The Commission proposal only includes direct emissions under the CBAM, but the Parliament is backing the inclusion of indirect emissions from the start. With the Council supporting the Commission proposal, but qualifying onsite electricity production by manufacturers as direct emissions, the trilogue negotiations will have to resolve these inconsistencies.

At this event, the ERCST presented an analysis of the reasons which speak both for and against the inclusion of indirect emissions, as well as the strengths and weaknesses of the different options if indirect emissions are to be included.

Agenda    ERCST Slides    ERCST Publication    Recording