CBAMs, Climate Clubs and Converging on Mitigation Ambition: Setting the right incentives for governments and business
As the EU is inching closer to adopting the first carbon border adjustment mechanism of any trade bloc, attention from its trade partners has been steadily increasing. At the same time, the EU and its member states have taken a prominent role in developing different conceptions of climate clubs and partnerships, e.g. in the framework of the G7 or the Just Energy Transition Partnership (JETP) for South Africa. Are these actions really two sides of the same coin? Will the CBAM serve as the additional motivation for other regions to step up their climate ambition, as the EU hopes? Or does it make it more difficult for the EU to engage in cooperative climate action?
At the same time, businesses are facing uncertainty – investments in greener technology require reliable regulatory frameworks and for the integration of global markets and supply chains to be maintained. CBAM and related will fall short of their climate goals if they trigger an onset of mutual trade restrictions.
The panel will explore amongst other issues:
- Whether cooperative approaches on climate action can benefit from or coexist with unilateral measures such as CBAM
- What companies need in terms of carbon leakage protection and trade measures to ramp up investment in sustainable technologies
- And what CBAM and the Fit-for-55 package will do for the EU’s position in the UNFCCC process and international climate negotiations generally
Moderator: Nick Bitsios, Chair of BusinessEurope Energy and Climate Working Group
Panellists:
- Vincente Hurtado Roa, Head of Unit, Indirect taxation and tax administration, European Commission DG TAXUD
- David Luke, Professor in Practice and Strategic Director, Firoz Lalji Institute for Africa at the London School of Economics
- Sanna Markkanen, Research Programme Lead and Senior Analyst, Cambridge Institute for Sustainability Leadership
- Adina Georgescu, Director, Eurometaux – European Non-Ferrous Metals Association