CBAM: Exploring MEP Chahim's Draft Report

The briefing evaluates MEP Mohammed Chahim's draft report on the Carbon Border Adjustment Mechanism (CBAM), focusing on the phase-out of free allowances, the extension of sectoral scope, financial support for Least Developed Countries, the allocation of revenues, and the handling of export rebates.

• MEP Chahim proposes accelerating the phase-out of free allowances for CBAM sectors to 2028, with the cement sector seeing its allowances end sooner in 2025.
• The draft report suggests expanding the scope of the CBAM to include hydrogen production as well as plastic and chemical production.
• The draft report proposes supporting Least Developed Countries (LDCs) by increasing the share of the EU budget dedicated to climate spending and using revenues equivalent to CBAM certificate sales to provide financial support to LDCs.
• Regarding revenues from auctioning allowances that replace free allocations, the draft report proposes a 50/50 split between the Innovation Fund for low-carbon technologies and the EU budget to repay debt from the Covid-19 recovery package.
• MEP Chahim suggests a compromise for exports involving a three-year monitoring period by the European Commission to determine if EU exports are negatively impacted, which could then lead to legislation to mitigate those risks.

APA

Bowcock, G. (2022). CBAM: Exploring MEP Chahim's Draft Report. Carbon Market Watch. https://carbonmarketwatch.org/2022/02/24/cbam-exploring-mep-chahims-draft-report/

Chicago

Bowcock, Gemma. CBAM: Exploring MEP Chahim's Draft Report. Carbon Market Watch, 2022. https://carbonmarketwatch.org/2022/02/24/cbam-exploring-mep-chahims-draft-report/.

Wikipedia

{{cite report |last1=Bowcock |first1=Gemma |title=CBAM: Exploring MEP Chahim's Draft Report |publisher=Carbon Market Watch |date=24 February 2022 |url=https://carbonmarketwatch.org/2022/02/24/cbam-exploring-mep-chahims-draft-report/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bowcock2022cbam, author = {Bowcock, Gemma}, title = {{CBAM: Exploring MEP Chahim's Draft Report}}, institution = {Carbon Market Watch}, year = {2022}, month = feb, url = {https://carbonmarketwatch.org/2022/02/24/cbam-exploring-mep-chahims-draft-report/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }