Summary
This Cefic discussion paper addresses the European Commission’s focus on maintaining industry competitiveness amid a climate-friendly transition. It supports measures like EU Border Adjustment Measures (BAMs) to prevent carbon leakage and ensure the EU’s industry can compete globally. The paper also stresses the importance of free and fair trade and a need for a comprehensive strategy that includes robust carbon pricing policies.
Cefic recommends:
- Export Competitiveness: Any new system should bolster the EU’s chemical industry’s export capabilities and retain its position as a global leader.
- WTO Compatibility: New measures must comply with WTO principles, ensuring non-discrimination and alignment with the Paris Agreement.
- International Dialogue: The EU should engage trading partners to avoid trade conflicts and promote globally ambitious climate objectives through bilateral agreements.
- Use revenues completely to support low carbon manufacturing and investment
- Current carbon leakage safeguard is not compromised: Future measures would need to be complementary to the ETS free allocation system
- Cost and complexity must be minimised, while the framework must be robust