The EU's carbon boundary regulation mechanism helps to stimulate the introduction of new carbon pricing mechanisms worldwide as countries implement, expand or review their approaches to carbon pricing policies, Aurora D'april, an EU policy specialist at the International Emissions Trading Association, told Platts.
However, according to her, the European Commission should accelerate the adoption of the remaining implementation acts, as clarity is needed regarding the calculation of carbon prices paid abroad and the discounts that importers can receive before the start of the final CBAM period in 2026.
"We urge European institutions to accelerate the adoption of implementing acts and understanding how to calculate and recognize the carbon price paid in third countries," Aurora D'april said in an interview with Platts, part of S&P Global Commodity Insights.
Fragmentation remains a key issue related to carbon emissions in the EU. levy, according to the IETA report, published on June 26.
"This is a very fragmented, rapidly changing space," said D'april. "CBAM has proven to be a catalyst for the evolution of carbon pricing, carbon pricing initiatives, and the evolution of emissions trading systems worldwide."
However, CBAM should not be viewed abroad as a purely environmental measure, she warned, adding that the EU's measures should be considered in the context of discussions about geopolitics and trade related to climate change.
The first legal problem that arose in response to the EU's mechanism for limiting carbon dioxide emissions arose in May, when Russia filed an official lawsuit with the World Trade Organization against CBAM and the emissions trading system.
Russia said that EU measures to limit carbon dioxide emissions were adopted in May. The sanctions imposed by the EU were "discriminatory" and "do not relate to genuine environmental measures."
"Russia's decision to refer this issue to the WTO is of key importance," said D'april. "The risk is that global activities will become increasingly complex, uncertain and expensive due to fragmentation. It's not something that could benefit the climate."
Carbon prices paid abroad
The EU CBAM Regulation states that importers may require a reduction in the number of certificates they must provide, in accordance with the carbon price that has already been actually paid in the country of origin for the claimed embedded emissions of CBAM goods.
The EU defines the carbon price as "the amount of money paid in a third country."
