ENVI Rapporteur’s Draft CBAM Report at Odds With Commission Plan on Key Points

This research paper by the International Institute for Sustainable Development (IISD) analyzes the differences between the European Commission's proposal for a carbon border adjustment mechanism (CBAM) and the draft report released by the rapporteur of the EU Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI). The author, Aaron Cosbey, identifies six primary areas of divergence, noting that the rapporteur generally advocates for greater speed and ambition than the Commission.

• The ENVI rapporteur proposes a significantly accelerated timeline for the CBAM compared to the European Commission. While the Commission suggested a three-year transition period and a 10-year ramp-up to full effect, the rapporteur suggests a two-year transition and a ramp-up to 100% in four years, which would bring the full CBAM into effect by January 2029.
• The rapporteur suggests expanding the scope of covered products to include hydrogen, plastics, and organic chemicals. This expansion would be substantial; plastics alone could add over 1,000 products and would increase the value of covered imports from China by approximately five times.
• There is a divergence regarding the types of emissions covered. The Commission's proposal focuses on direct emissions produced on-site, whereas the rapporteur proposes including indirect emissions, specifically those resulting from the generation of electricity used in production.
• The rapporteur's draft includes provisions to address the impact of CBAM on exports and the needs of developing nations. Specifically, the rapporteur calls for a report in 2026 on export impacts and suggests that the EU increase development assistance for the decarbonization of manufacturing in least-developed countries by an amount no less than the revenues raised by the CBAM.
• Both the Commission and the rapporteur agree that credits for foreign carbon prices should only apply to explicit pricing, such as carbon taxes or emissions trading systems, and should not include implicit carbon costs resulting from regulations.

APA

Cosbey, A. (2022). ENVI Rapporteur’s Draft CBAM Report at Odds With Commission Plan on Key Points. International Institute for Sustainable Development. https://www.iisd.org/articles/envi-rapporteurs-draft-cbam-report

Chicago

Cosbey, Aaron. ENVI Rapporteur’s Draft CBAM Report at Odds With Commission Plan on Key Points. International Institute for Sustainable Development, 2022. https://www.iisd.org/articles/envi-rapporteurs-draft-cbam-report.

Wikipedia

{{cite report |last1=Cosbey |first1=Aaron |title=ENVI Rapporteur’s Draft CBAM Report at Odds With Commission Plan on Key Points |publisher=International Institute for Sustainable Development |date=2 March 2022 |url=https://www.iisd.org/articles/envi-rapporteurs-draft-cbam-report |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cosbey2022envi, author = {Cosbey, Aaron}, title = {{ENVI Rapporteur’s Draft CBAM Report at Odds With Commission Plan on Key Points}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = mar, url = {https://www.iisd.org/articles/envi-rapporteurs-draft-cbam-report}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }