MEP Manuela Ripa on today’s vote in the European Parliament on a Carbon Border Adjustment Mechanism

"The European Parliament introduces a new instrument for global climate protection with a CO2 border adjustment tax.”

Brussels, 22.06.2022 – Today in Brussels, the European Parliament voted in the second attempt on three core proposals of the EU climate package “Fit for 55” – the EU Emissions Trading Scheme, the Social Climate Fund and the Carbon Border Adjustment Mechanism (CBAM).

ÖDP MEP Manuela Ripa who was shadow rapporteur for CBAM for her group Greens/EFA welcomes the outcome of today’s vote. “Especially today’s decision to introduce a CO2 border adjustment tax in particular sets new standards for European and also global industrial production. The avoidance of CO2 will be rewarded and the conversion to corresponding climate-neutral processes will finally be set in motion worldwide. This will also give third countries strong incentives to take stricter climate protection measures.

With the vote in the Environment Committee in mid-May, we had presented an ambitious instrument in line with world trade law. Despite many efforts by Christian Democrats, Liberals and anti-Europeans to water down the entire climate protection package, this was averted in plenary at the beginning of June, also thanks to my group. We have achieved a better result today.

The end of the phasing out of free emission allowances under the EU-ETS will now be two years later than we demanded. Yet, this still improves the original Commission proposal. We have achieved a good result with ambitious climate protection targets for CBAM. The free allocation of EU ETS emission allowances, which ultimately did not advance the decarbonisation of industry to the necessary extent, will finally come to an end with CBAM and can then no longer be used as a cover for a barely functioning system“, says Ripa determined.

Manuela Ripa welcomes the fact that the EU Parliament was able to add further improvements to the original Commission proposal. For example, one EU CBAM authority will be established instead of different national ones, which will prevent, identify and penalize any type of circumvention including abuse and fraud. Moreover, it was possible to negotiate into the text that CBAM revenues will be used to provide financial assistance to least developed countries to help decarbonize their industries. Compared to the Commission’s original proposal, Greens/EFA managed to strengthen anti-circumvention measures in the regulation. So-called downstream products, i.e. products composed of several materials, are also to be covered by the CO2 border adjustment tax at a later stage. Ripa regrets, however, that the instrument was weakened in the area of export rebates and the scope of application, where she and her group Greens/EFA would clearly have liked to see more.

“We are facing a turning point that requires new instruments. Thanks to today’s vote, we Europeans are introducing CBAM, a global new instrument that takes climate protection seriously. We need CBAM as a strong instrument for the industrial policy shift towards CO2 free technologies. In this way, we also create long-term structures for a new, climate-friendly global trade. In the upcoming trilogue negotiations, we must now continue to fight for strong climate protection,” concluded the European politician”, concluded the European politician.