The European Commission is due to release its much anticipated mechanism to impose carbon emissions costs on imported good on 14th July. This would see a charge levied at the border, proportionate to the carbon emitted during the production of imported goods. From the EU’s perspective, a carbon border adjustment mechanism (CBAM) is to ensure that its efforts to combat climate change are effective, and do not result in carbon leakage, as energy-intensive industries relocate outside the EU’s regulatory jurisdiction and European production is outcompeted by cheaper, carbon-intensive imports.
Expected to initially apply to heavy industry sectors including steel, iron, cement, fertilisers, aluminium and electricity, it will require importers to provide data for imported goods and buy digital certificates, the price of which will be linked to the EU carbon market.
Countries that have a similar domestic carbon price to the EU could be granted equivalence, meaning that exports originating in their territory would not be subject to the EU’s CBAM, so as to avoid double carbon taxation.
Hear about the implications of the mechanism for Australian trade with Europe and the practical implementation from:
- Vicente Hurtado Roa, Head of the Energy Taxation and other Indirect Taxes Unit, DG TaxUD, European Commission.
- Marian Schoen, National Director, European Australian Climate Business Network.
- Jason Collins, Chief Executive Officer, European Australian Business Council.
- Bill Cole, Partner, International Trade, BDO.
Along with an eminent panel of business and government representatives.
This webinar is presented in collaboration with the European Union Australian Climate Business Network which is supported by Climate KIC Australia and has been organised with the financial support of the European Union’s Partnership Instrument.
The opinions expressed are the sole responsibility of the speakers and do not necessarily reflect the views of the European Union.