In a landmark vote on 10 March the European Parliament adopted a resolution to add a carbon border adjustment mechanism (CBAM), a carbon levy in effect, on all imports from outside the EU.
[s2If is_user_logged_in()]The motion was passed in the Parliament by 444 votes for, 70 against and 181 abstentions and the EP said in a statement that the vote underlines the EU’s increased ambition to combat climate change and to meet its Paris Agreement obligations.
Following the European Parliamentary vote the European Commission will present a legislative proposal on CBAM during the second quarter of 2021 as part of the European Green Deal, and will offer a proposal on how to include the revenue generated to finance part of the EU budget, before these proposals can become law.
Following an impact assessment conducted by the EU, the commission says CBAM should cover the power sector and energy-intensive industrial sectors including cement, steel, aluminium, oil refineries, paper, glass, chemicals and fertilisers, which, it is understood, “continue to receive substantial free allocations, and still represent 94 % of EU industrial emissions.”
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