EU: Certification system for imports of certain carbon dioxide-intensive goods
ECOFIN agreed to adopt an adjusted version of the EC's proposal for a carbon-border adjustment mechanism.
Certain carbon dioxide-intensive goods
The EU Council of Ministers for Economic Affairs and Finance (ECOFIN) in March 2022 agreed to adopt an adjusted version of the European Commission's proposal for a carbon-border adjustment mechanism. Read the ECOFIN release.
One measure would introduce a new certification system for imports of certain goods from countries outside the EU in an effort to prevent the production of carbon dioxide-intensive products from being relocated to countries with less stringent climate regulations.
- The adopted compromise proposal would introduce a new form of carbon dioxide certificate for certain imported goods.
- The carbon-border adjustment mechanism is intended to complement the EU's existing emissions trading scheme by introducing a new carbon dioxide pricing mechanism for goods imported into the EU from third countries.
- The aim would be intended to reduce the risk of production being moved out of the EU to avoid the EU's emission regulations (so-called “carbon dioxide leakage”).
The regulations are intended to cover goods from certain designated industrial sectors such as:
- Electricity production
Read a March 2022 report (Swedish) prepared by the KPMG member firm in Sweden
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