This device, unique in the world, will subject imports to several sectors (steel, aluminum, cement, fertilizer, electricity, but also hydrogen) to EU ENG standards. It will effectively enter into force in 2026 or 2027.
by Audrey Garric
This is one of the flagship measures to accelerate the decarbonation of the old continent industry. The European Union (EU), gathered in trilogue on Monday, December 12, has agreed on the main lines of its Carbon adjustment mechanism at borders (MacF), a unique device in the world. It will tax, in the most polluting sectors (steel, cement, fertilizers, etc.), imports of goods from third countries with less strict environmental standards. The idea is to avoid an “ecological dumping” or what is called “carbon leaks” – they would see industrialists relocating their production outside Europe – while encouraging the rest of the world to increase its efforts in reduction in greenhouse gas emissions.
“The EU is the first commercial area in the world to put a carbon price on its imports. We have been talking about it for more than twenty years. This is a historic agreement for the climate”, rejoices Pascal Canfin, the president of the Environment Commission of the European Parliament.
The agreement reached between the Commission, the Member States and the Parliament does not solve all the thorny subjects. The outstanding major points, in this file intimately linked to the reform of the carbon market, will be discussed during another trilogue, Friday and Saturday. All of these measures are part of the vast legislative arsenal (called “Fit for 55”) under negotiation to allow the EU to hold its climatic objectives: reduce greenhouse gas emissions by at least 55 % by 2030 compared to 1990 in order to reach carbon neutrality in 2050.
Part of the functioning of the carbon adjustment mechanism is now established. The system will concern imports of the five sectors deemed the most polluting (steel, aluminum, cement, fertilizer, electricity) proposed by the European Commission, extended to hydrogen, as claimed by the European Parliament. By 2030, the MACF will be extended to all sectors for which there are risks of carbon leakage, on the basis of a list which will be established by the Commission. MEPs wanted for example to see covered plastics or organic chemicals.
almost 60 % of covered EU emissions
Immediately, almost 60 % of Europe’s industrial emissions are covered by the mechanism. The issue of processed products will be dealt with by a new legislative proposal one year before the effective entry into force of the MACF. “This is an essential element of the agreement found because it means that the potential problem, the risk of relocation, will be resolved before entering into force,” approves Pascal Canfin. There is indeed a fault. “If an automotive manufacturer imports steel in Europe from Turkey, he will pay the MacF. But if I import in Europe a car made in Morocco with Turkish steel, he will not pay,” illustrates -il.
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