Questions and answers on the introduction of an import inclusion scheme for cement
Summary
The document advocates for a mechanism requiring cement and clinker importers to pay for their pollution to create a level playing field and end free allocation in the EU ETS. It argues that free allocation has hindered innovation, increased emissions by subsidizing high-carbon exports to Africa, and generated over €5 billion in windfall profits for the cement industry. The briefing asserts that an import inclusion scheme is WTO-compatible and beneficial for the industry, as it would incentivize the adoption of new technologies in a sector where European production is currently less efficient than in other global regions.
Key insights
- Free allocation of emission permits has negatively impacted the cement sector by undermining innovation, increasing CO2 emissions through the subsidization of high-carbon clinker exports to Africa, and creating windfall profits exceeding €5 billion.
- The ENVI committee proposes an import inclusion scheme (or border adjustment measure) to ensure importers pay for emissions, which would end free allocation and subject both domestic and foreign producers to the same carbon price.
- A 2011 Boston Consulting Group study commissioned by CEMBUREAU found that full auctioning and an import inclusion scheme could be beneficial for the cement industry.
- The document asserts that an import inclusion scheme is compatible with WTO rules provided it is non-discriminatory and applies the same carbon price to domestic and foreign producers.
Cite the original document
- APA
- Carbon Market Watch (2017). Questions and answers on the introduction of an import inclusion scheme for cement. https://carbonmarketwatch.org/publications/how-the-eu-ets-can-incentivize-cements-low-carbon-transition/
- Chicago
- Carbon Market Watch. Questions and answers on the introduction of an import inclusion scheme for cement. 2017. https://carbonmarketwatch.org/publications/how-the-eu-ets-can-incentivize-cements-low-carbon-transition/.
- Wikipedia
- {{cite report |author=Carbon Market Watch |title=Questions and answers on the introduction of an import inclusion scheme for cement |date=6 February 2017 |url=https://carbonmarketwatch.org/publications/how-the-eu-ets-can-incentivize-cements-low-carbon-transition/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{carbonmarketwatch2017questions, author = {{Carbon Market Watch}}, title = {{Questions and answers on the introduction of an import inclusion scheme for cement}}, institution = {Carbon Market Watch}, year = {2017}, month = feb, url = {https://carbonmarketwatch.org/publications/how-the-eu-ets-can-incentivize-cements-low-carbon-transition/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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