Italy, alongside France and Slovakia, has presented a joint position to the Environment Council calling for a revision of the EU’s carbon border framework to better align with economic competitiveness. The three countries argue that while the Carbon Border Adjustment Mechanism (CBAM) is vital for climate goals, it must not hinder European industry or increase administrative burdens unnecessarily. With the full implementation of CBAM scheduled for 2026, the group urges prompt action to improve the system. They advocate for simplifying technical rules, such as using standardized emission values for suppliers and end-users, and for easing requirements on small importers. They also stress the need to expand CBAM’s scope to include downstream sectors and products vulnerable to carbon leakage, proposing simplified calculation methods for complex goods.
The delegations further warn that current CBAM rules neglect the risk of carbon leakage in exports, as there are no preventive measures in place until after the transition period ends. They recommend conducting a forward-looking assessment before 2026 to avoid potential harm to EU exporters. Additionally, they suggest that indirect emissions should only be included in CBAM if doing so does not harm energy-intensive industries. Finally, the group calls on the European Commission to deliver its impact report before the transition period ends, rather than waiting until 2028, and to consider continued support such as targeted free ETS allowances for export-focused sectors to maintain a competitive edge.
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