Joint NGO statement on the Carbon Border Adjustment Mechanism (CBAM) ahead of the ECOFIN Meeting

Civil society organisations express concerns about the agreement reached in COREPER II on a Carbon Border Adjustment Mechanism (CBAM) compromise text that does not address important issues linked to the EU Emission Trading System (ETS) Directive and other key aspects of the Fit for 55 package.

Together with other NGOs, we support a fair and effective CBAM, designed and implemented as an alternative to current EU ETS carbon leakage measures such as free allowances and indirect cost compensation. We believe that agreeing on a CBAM separately from the EU ETS Directive would be detrimental to its implementation, and risk undermining the level of ambition and decarbonisation incentives of the Fit for 55 package