CEMA Secretary General raises question on Carbon Border Adjustment Mechanism
Last 18 of February, DG TRADE hosted a civil society dialogue with Phil Hogan, European Commissioner for Trade. On his opening remarks he presented four main proposals to enhance the transparency and accountability of the European trade policy during his mandate:
- broadening the reporting of committees established under the EU's trade agreements;
- publishing Commission's decisions on Member State requests regarding Bilateral Investment Agreements;
- publishing the recommendations for future negotiating directives for broader agreements containing substantial trade provisions; and
- publishing non-business sensitive summary records of Trade Defence Instruments Committee meetings.
In these kinds of events civil society organisations are given the opportunity to express their views and raise their concerns to the Commission.
Jerome Bandry, CEMA Secretary General, expressed industry concerns about the Carbon Border Adjustment Mechanism announced under the Green Deal, which will need to be WTO compatible. He asked the Trade Commissioner about the lead on this issue under the current Commission, DG TRADE’s involvement and the need to avoid retaliatory measures.
Commissioner Phil Hogan explained that Commissioner Paolo Gentiloni in charge of EU’s Economy portfolio would take the lead on the Carbon Border Adjustment Mechanism, reassuring the audience that DG TRADE would also be involved. He confirmed that there would only be an initial assessment in 2020, with a proposal in 2021. The Trade Commissioner expressed his commitment to ensure the European Union will continue to be competitive and pointed out the relevance of the forthcoming Industrial Strategy. Next to that, the Commission will assess the way the EU Emissions Trade System is performing as well as if there is a need to be extended to other sectors, or reformed. Mr Hogan explained that carrying out a very careful assessment will be essential to ensure that such new initiatives will not result in a transfer of activities and businesses outside the EU
CEMA will closely follow-up further discussions on this crucial issue.
