APPLiA’s Digital Interviews: CBAM, the EU Carbon Border Adjustment Mechanism

Here is the second episode of APPLiA’s series of short digital interviews. In this format, experts reply to questions and discuss the view of the home appliance sector on key topics for the EU. The idea is to feed the debate by reporting experiences from the sector. Let’s continue with CBAM.

 

Watch APPLiA's second digital interview, here.

Following up on the first episode of its newly developed digital interviews, APPLiA is now launching a short interview with Eoin Kelly, Digital and Competitiveness Policy Specialist in the Association, discussing the Carbon Border Adjustment Mechanism as proposed by the EU Commission.

“We foresee some challenges in implementing the mechanism. For one thing, we are concerned about the impact on competitiveness of industry”, explained Mr Kelly when asked by the Director General of APPLiA about the consequences of the implementation of CBAM.

If it’s to be used, the CBAM needs to be imposed not just on raw materials, but also on finished products, so to avoid that imports coming into the EU are more competitive than products that are manufactured in the EU. A tax only on raw materials would incentivize European manufacturers to move their factories out of Europe. This would mean less jobs in Europe and worsening of carbon leakage, which is the very problem the EU Commission wanted to tackle in the first place.

How to make the CBAM work: Engage other world leaders, like China and the US, in a multilateral approach that is in line with WTO rules. “We should be leaders in demonstrating that we can hit climate targets and maintain the EU's competitiveness”, concluded Eoin Kelly.

This and much more is covered in this second digital interview, available at this link.