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:

  • Cement
  • Aluminum
  • Fertilizers
  • Electricity production
  • Iron
  • Steel

Read a March 2022 report (Swedish) prepared by the KPMG member firm in Sweden


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