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European Parliament backs plan to price carbon at EU’s border

(EurActiv, 11 Mar 2021) The European Parliament on Wednesday (10 March) overwhelmingly endorsed the creation of a carbon border charge that would shield EU companies against cheaper imports from countries with weaker climate policies.

The non-binding vote was an early step in a long path to setting up the carbon border levy, which faces a very difficult ratification with opinions widely diverged among the bloc’s 27 member states.

The resolution passed with with 444 votes in favour, 70 against and 181 abstentions, the Parliament said in a statement.

The so-called carbon border adjustment mechanism is seen as a key part of the EU’s Green Deal, an ambitious push to achieve carbon neutrality by 2050 and meet the targets of the Paris Climate Agreement.

The mechanism is intended to make sure that imports from outside Europe do not have an unfair advantage if manufactured with a bigger carbon footprint.

“The CBAM is a great opportunity to reconcile climate, industry, employment, resilience, sovereignty and relocation issues. We must stop being naïve and impose the same carbon price on products, whether they are produced in or outside the EU,” said Yannick Jadot, a French lawmaker who authored the Parliament’s resolution.

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EurActiv, 11 Mar 2021: European Parliament backs plan to price carbon at EU’s border