CBAM after the European elections - quo vadis?

The conservative EPP group emerged as the clear winner of the European elections at the weekend. emerged as the clear winner. At the same time, however, the parties on the right have also made strong gains. This is particularly true in France and Germany. In these countries of all places, the the Greens made strong gains in the last election, triggering a a veritable green wave in the European Parliament. The then elected President of the European Commission, Ursula von der Leyen, responded with the Green Deal. This package of measures aims to make the European Union to climate neutrality by 2050. The Carbon Border Adjustment Mechanism_ is an important component of this. Now that the Greens in particular have suffered heavy losses in this election in this election. This raises the question of what the future holds for the Green Deal and consequently also with CBAM?

Agenda for the new legislature

As the Frankfurter Allgemeine Zeitung has pointed out, Manfred Weber, leader of the EPP party and parliamentary group, had already announced after the election in the Netherlands, which was also won by the right-wing populists, called for a the Green Deal. He is now likely to see his position. This is probably also the view of heads of state and heads of state and government. For the next term of office, the second strategic chapter is entitled “A prosperous and competitive Europe” -- no trace of the Green Deal.

So everything back to square one?

I don't think so. Because in all likelihood Ursula von der Leyen will be will be re-elected President of the European Commission. She will hardly turn back her own political legacy. The Green Deal was her agenda.

Comparison with other laws

In my opinion, this can also be seen in the adoption of the European Supply Chain Directive (CSDDD). Here it seems as if such a result had already dawned on the players involved in the European elections. already dawned on them. They therefore tried to push the directive through before the election before the election -- with success. The Commission has therefore quickly cornerstones of the Green Deal before it is too late. is too late.

This applies all the more to the Carbon Border Adjustment Mechanism. The Green Deal is a comprehensive political agenda that ranges from emissions trading emissions trading and the ban on combustion engines, to targets for agriculture and the the CO~2~ border adjustment mechanism. Companies are suffering suffer from too many regulatory requirements that increase bureaucracy and harm competitiveness. In the case of regulatory ordinances regulations, it may well be that their requirements are weakened. be weakened.

Goals of CBAM

But CBAM is both an ecological and a competition policy instrument of competition policy. It prevents the leakage of CO~2~ emissions by preventing the migration of European industrial industrial production. In addition, the new emissions trading system strengthens the competitiveness of European production.

Commitments of the EU

The European Union is also obliged under the Paris Climate Agreement to reduce greenhouse gas emissions and ultimately achieve climate neutrality. achieve climate neutrality. However, a climate-neutral, “prosperous and competitive Europe” is hardly conceivable without CBAM. In this respect the CO~2~ border adjustment also fits in with the new strategic orientation.

I therefore assume that CBAM has come to stay. What do do you think?

Support

If you support your manufacturers in third countries with the collection of emission data with an automated solution on site, feel free to please send me a short e-mail to helge@kolum.earth. We will make your manufacturer and your company CBAM-ready!

Best regards

Helge Wieggrefe