Third-country carbon pricing under the EU CBAM
Third-country carbon pricing under the EU CBAM
Approaches for and challenges of recognising domestic payments
Autor:innen
Herausgeber
Quelle
Schlagwörter
EU ETS, Maritime, Fit for 55, emissions trading
Finanzierungskennzeichen
3720425040
standardisiertes Finanzierungskennzeichen
37204250
Verbundene Publikation
Zitation
Third-country carbon pricing under the EU CBAM, 2024. [online]. German Environment Agency. Verfügbar unter: https://openumwelt.de/handle/123456789/9789
Zusammenfassung englisch
In October 2023, the EU introduced a Carbon Border Adjustment Mechanism (CBAM) imposing a carbon price on imports of selected goods to the EU market. This way, the CBAM complements the European Emissions Trading Scheme (EU ETS). One question that arises for the implementation of the new instrument is how third-country carbon prices can be recognised and deducted from CBAM payments. The discussion paper presents two possible approaches: One that recognises carbon costs that are actually incurred, and another that uses carbon price averages of the country of origin.The discussion paper raises conceptual considerations and open questions regarding the technicalities of recognising third-country carbon prices, such as the treatment of multi-product installations or upstream carbon pricing instruments. It discusses challenges that are specific to the processes of cap-and-trade systems, tradable performance standards, and carbon taxes.