On May 13, the European Commission began consultations on a draft implementation regulation that sets out rules for potential CBAM tax rebates on carbon-intensive imports of goods subject to carbon prices outside the EU.
The text says that importers of EU goods whose emissions have been partially offset by the purchase of carbon credits under the local carbon pricing system can receive a discount on CBAM certificates that they must purchase.
The draft law distinguishes between "domestic" and "international" loans. Discounts for the former corresponding to national decarbonization projects will not be subject to any conditions; discounts offered for projects outside national jurisdiction must comply with the conditions set out in article 6 of the Paris Agreement.
International credits may also amount to only up to 10% of the emissions claimed by the installation, in accordance with the carbon pricing scheme.
Currently, only Japan, South Korea and Vietnam allow the use of international loans within their carbon markets, according to the International Carbon Action Partnership.
Consultations will last until June 10. The Commission also published the opinions of stakeholders on the project.
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