The Carbon Border Adjustment Mechanism must replace EU carbon market freebies

The author contends that free ETS allowances violate the 'polluter pays' principle and have failed to reduce emissions in the EU cement industry, which saw gross CO2 emissions rise from 103 million to 108 million tonnes between 2013 and 2019. The text asserts that the cement industry gained approximately €3.5 billion in 'over allocation' profits following the 2008 recession, which were invested in plants outside Europe rather than in Best Available Techniques (BAT) within the EU. Consequently, the author calls for the full implementation of CBAM and the complete phase-out of free allowances by the end of the decade to ensure a level playing field and meet the goals of the Fit for 55 package.

• Free allowances under the Emissions Trading System (ETS) are described as unsustainable and contrary to the 'polluter pays' principle, having failed to change industrial behavior.
• Gross CO2 emissions from the EU cement industry increased from 103 million tonnes to 108 million tonnes during the third phase of the ETS, which spanned from 2013 to 2019.
• The EU cement industry earned roughly €3.5 billion in 'over allocation' profits due to production slowdowns after the 2008 global recession, funds which were used for plants outside Europe instead of upgrading European facilities with Best Available Techniques (BAT).
• EU-28 cement facilities lagged behind other regions in the use of dry kilns with carbon-reducing preheater and precalciner, with only 48% usage in 2019 compared to 93% in India and 78% across Morocco, Algeria, and Tunisia.
• To achieve the Fit for 55 package goal of at least 55% emissions cuts by 2030, the EU must fully implement the Carbon Border Adjustment Mechanism (CBAM) and phase out all free ETS allowances by the end of the decade.

APA

Lamy, L. (2022). The Carbon Border Adjustment Mechanism must replace EU carbon market freebies. Carbon Market Watch. https://carbonmarketwatch.org/2022/06/02/the-carbon-border-adjustment-mechanism-must-replace-eu-carbon-market-freebies/

Chicago

Lamy, Laurence. The Carbon Border Adjustment Mechanism must replace EU carbon market freebies. Carbon Market Watch, 2022. https://carbonmarketwatch.org/2022/06/02/the-carbon-border-adjustment-mechanism-must-replace-eu-carbon-market-freebies/.

Wikipedia

{{cite press release |last1=Lamy |first1=Laurence |title=The Carbon Border Adjustment Mechanism must replace EU carbon market freebies |publisher=Carbon Market Watch |date=2 June 2022 |url=https://carbonmarketwatch.org/2022/06/02/the-carbon-border-adjustment-mechanism-must-replace-eu-carbon-market-freebies/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{lamy2022carbon, author = {Lamy, Laurence}, title = {{The Carbon Border Adjustment Mechanism must replace EU carbon market freebies}}, publisher = {Carbon Market Watch}, year = {2022}, month = jun, url = {https://carbonmarketwatch.org/2022/06/02/the-carbon-border-adjustment-mechanism-must-replace-eu-carbon-market-freebies/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }