LDC Portal - International Support Measures for Least Developed Countries - Carbon Border Adjustment Mechanism - CBAM

CBAM: revenues to support LDCs in decarbonisation

MTAVARES1 — Wed, 18 May 2022 01:23:00 +0000

17 May 2022. Today the European Parliament's Committee on Environment, Public Health and Food Safety adopted the report on the regulation establishing a Carbon Border Adjustment Mechanism (CBAM). CBAM is seen as a way of preventing "carbon leakage" - that is, the movement of carbon-emitting industries to other countries - as Europe transitions to a lower-carbon economy.

Earlier in the process, an exemption for LDCs had been discussed. This was not included in the report. Instead, the press release states, Members of the European Parliament (MEPs) want the EU to provide financial support to the efforts of LDCs in decarbonising their manufacturing industries, This support must be "at least equivalent in financial value to the revenues generated by the sale of CBAM certificates" (read the EU Parliament's press release and other materials here).

The report is scheduled for a vote at the plenary session on June 6-9. After that, Parliament will start negotiations with member states.

Panel event: The impact of CBAM on poorer countries - Oxfam EU

MTAVARES1 — Tue, 10 May 2022 09:00:00 +0000

Recording: Panel event: The impact of CBAM on poorer countries - YouTube

Panel on the impact of CBAM on poorer countries Tickets, Tue 10 May 2022 at 11:00 | Eventbrite

"The Carbon Border Adjustment Mechanism (CBAM) proposed by the European Commission means companies exporting into the EU must buy a carbon permit reflecting the amount of CO2 emissions in their exported goods. The current proposal must be negotiated between the European Parliament and the Council. Oxfam is concerned about the negative impact that CBAM can have on the poorest countries, if specific measures (such as exemption and additional funds for climate finance), are not put in place. Our speakers Mohammed Chahim, European Parliament Rapporteur for the Carbon Border Adjustment Mechanism File; Tim Gore, Head of the Climate and Circular Economy Programme at Institute for European Environmental Policies; Dimas Sinoia, Research and Project lead at CDD (Centro para Democracia e Desenvolvimento) Mozambique; and Parvin Ngala, Regional Director Horn East and Central Africa at Oxfam International discuss some of the implications of the CBAM on poorer countries and recommendations to the EU."

tags:

Climate change

Climate financing

Trade

Carbon Border Adjustment Mechanism - CBAM

LDCs and the proposed EU Carbon Border Adjustment Mechanism

MTAVARES1 — Tue, 04 May 2021 13:00:00 +0000

4 May 2021. The European Union (EU) is in the process of establishing a carbon border adjustment mechanism (CBAM), in the context of the European Green Deal. The CBAM would place a carbon price on imports of certain goods from outside the EU, as a way to reduce the risk of "carbon leakage". There is concern that the mechanism could lead to an unfair burden being placed on LDCs, unless there were an exemption. The text adopted by the European Parliament refers to LDCs as possible beneficiaries of revenues generated by the mechanism, which could increase EU contributions to international climate finance. The final design of the mechanism is still to be defined. The EU was due to launch the mechanism in mid-2021. Updates forthcoming. More information and considerations on support to LDCs and graduating countries in the context of the CBAM here.

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