EU to make most companies exempt from carbon border levy, draft shows
The European Commission plans to exempt "the vast majority" of companies covered by the EU's carbon border levy due to low emissions intensity, with a proposed threshold of 50 metric tons per year. This move would significantly reduce the number of importers subject to the levy, which aims to cut greenhouse gas emissions from imported goods. The proposal aims to simplify rules for companies complying with the CBAM and make it easier to claim reduced costs.
- The exemptions could have significant implications for global supply chains, particularly in industries where emissions intensity is relatively low, such as textiles or paper production.
- How will the EU's new approach to carbon border levies affect the competitiveness of European exports in a global market increasingly driven by climate considerations?