Energy Evolution A dose of realism for Europe’s CBAM
Apr 15, 2025
Coralie Laurencin, Senior Director at S&P Global, Dan Maleski from Redshaw Advisors, and Nick Ogilvie of Carbon Chain discuss the EU's Carbon Border Adjustment Mechanism (CBAM) and its complexity. They unravel the balance between climate goals and economic realities facing industries. Insights include the compliance burdens on importers, reactions from the solar sector, and challenges posed by global market pressures. The trio also highlights the importance of accurate emissions data and the impact of protectionist sentiments on international trade.
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EU Simplifies CBAM for Importers
- The EU Commission proposes simplifying CBAM by reducing the number of importers obligated to comply and adjusting calculation methods.
- These changes aim to ease administrative burdens while keeping emissions coverage high and providing importers breathing room.
CBAM as Protective Shield
- The EU appears to make CBAM more protective and slightly protectionist to support struggling domestic industries.
- This reflects geopolitical tensions and European industry competitiveness concerns amid global energy disparities.
Potential Revisions to EU Policies
- EU may reconsider certain Fit for 55 measures due to industry and member state concerns about feasibility and competitiveness.
- These tensions suggest future EU industrial and climate policy changes affecting the carbon market and CBAM.