In view of the forthcoming legislative proposal of the European Commission on Carbon Border Adjustment Mechanism (CBAM), within the “Fit for 55” Package, AFEP is advocating for the EU to take concrete measures to fight against carbon leakage and related competitiveness gaps at the expense of EU-based industries.

Drawing on the findings of our quantitative and comparative Assessment of the Best Policy Tools to Achieve Climate Neutrality and Competitiveness, published last January, the AFEP’s position is structured around five key messages: 

    1. CBAM should conciliate environmental purpose and maintaining of the EU businesses’ competitiveness in the internal market and abroad   
    2. CBAM could be the most efficient tool on the environmental and economic front only if it comes along with a strong support to the green transition of the EU industries    
    3. CBAM design and scope must target market efficiency and equitable treatment for all EU industrial sectors. It should only apply to voluntary sectors, without modification of the allocation rules during the testing phase.  
    4. Country-specific exemptions should be cautiously weighed up  
    5. CBAM should in any event be complemented by environment-friendly trade disciplines 
AFEP position on the Carbon Border Adjustment Mechanism (CBAM)
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