ENVI accepts draft reports on CBAM expansion, Decarbonization Fund
On July 6, ENVI's environmental protection committee adopted compromise amendments to a legislative proposal to extend the CBAM carbon border levy to new sectors in the steel and aluminum supply chains.
The report, prepared by Mohammed Shahim, a member of the European Parliament from the Netherlands, was adopted with 56 votes in favor, eleven against and twelve abstentions.
The adopted text cancels the controversial clause on the temporary suspension of CBAM, expands the list of sectors covered by the fee, and aims to tighten anti-circumvention measures.
ENVI also approved its position on a temporary decarbonization fund to compensate some sectors covered by CBAM. The draft report, prepared by French MEP Pascal Canfin, was adopted with 59 votes in favor, sixteen against and twelve abstentions.
The adopted draft states that the fund should provide support to certain EU exporters. Both drafts are to be adopted at the plenary session on September 14-17, after which trilateral negotiations with the EU Council may begin.
While Member States have already determined their position on extending the CBAM, negotiations on the fund have reached an impasse. On July 6, ENVI also approved the June trilateral agreement on the reserve of emissions quotas for the future carbon market for roads and buildings, ETS2.
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