The EC also defends temporary deviation from conditions for fertilizers

The expansion of the European Cross-Border Carbon Adjustment Mechanism (CBAM) is expected to increase revenues from it by 23%, potentially bringing in an additional €500 million by 2030. This was reported by EUobserver.

This step also includes taking scrap into account for consumption.

Speaking at a meeting of the European Parliament’s Environment Committee on January 27, European Commissioner for Climate Action Wopke Hoekstra recalled that CBAM had been extended to approximately 180 product types, mostly goods containing steel and aluminum. This move is intended to prevent companies from avoiding carbon taxes by carrying out the most polluting production operations outside the EU and then sending the finished products back to the bloc.

Hookstra also clarified that the expansion would be “narrowly targeted” and would only apply to products where there is a high risk of circumvention, rather than complex industrial goods such as cars.

Some MEPs criticized the CBAM simplification package at the meeting. However, the European Commissioner for Climate Action pointed out that 99% of emissions are still covered by the mechanism, adding that it is extremely important to reduce the administrative burden without weakening the impact on the climate.

He added that the new threshold would be subject to annual assessment based on updated trade flows and emissions data, as well as a review clause that would allow the EC to adjust the system if it did not work.

The European Commission will also introduce stricter rules to combat carbon tax evasion, including the use of default values for countries if importers do not provide reliable emissions data.

In addition, Huxtra defended the temporary exemption from CBAM requirements for fertilizers, citing pressure on farmers and the risk of price increases. According to him, the European fertilizer industry is operating at 30% below capacity and is generally more environmentally friendly than imports, a significant portion of which still come from Russia.

The European Commissioner added that if a choice has to be made, it is better to help European farmers.

It should be recalled that in January this year, the European Commission proposed a provision on the temporary suspension of the cross-border carbon adjustment mechanism for goods in serious and unforeseen circumstances – a new Article 27a in the relevant regulation.