Stronger CBAM and decarbonisation fund will protect European investment and industry
Renew Europe welcomes today’s decision by MEPs to back a stronger Carbon Border Adjustment Mechanism and the creation of a Temporary Decarbonisation Fund to protect European industry, accelerate decarbonisation and strengthen Europe’s investment environment.
The proposals extend CBAM to more downstream products, strengthen rules against circumvention and support European companies competing in export markets where rivals do not face an equivalent carbon price.
For Renew Europe, climate policy and industrial competitiveness go hand in hand. Europe’s dependence on imported fossil fuels remains the biggest driver of high and volatile energy prices. Reducing that dependence while giving industry a predictable framework for investment is essential both for Europe’s competitiveness and its energy security.
The EU Emissions Trading System has delivered proven emissions reductions while helping drive investment in cleaner technologies. Liberals and Democrats believe the EU must maintain a steady course on emissions reductions and resist attempts to weaken one of Europe’s most effective climate policy tools.
Pascal Canfin MEP, European Parliament rapporteur on the Temporary Decarbonisation Fund, and shadow rapporteur on the CBAM extension to downstream products said:
“Europe must be a safe place to invest in decarbonisation: this is what a stronger and wider CBAM will contribute to deliver, and this is how we keep connecting competitiveness, sovereignty, and climate action together. And let’s not forget CBAM also work outside our borders! Thanks to the existence of the CBAM, countries such as Brazil, Turkey or Vietnam are developing their own carbon markets.
The Temporary Decarbonisation Fund completes that approach by protecting our exporters on global markets. Parliament is ready to move, but the Council has yet to agree a position on the Fund. Member States must now step up. We cannot ask European industry to decarbonise while leaving our exporters at a competitive disadvantage. The lack of a Council position risks delaying a solution designed for European exporters to create a level playing field with competitors abroad. Renew Europe is calling on Member States to engage with Parliament without delay.”
Pascal CanfinRenew Europe MEP, France, Renaissance