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Including consumption in the EU ETS – Administrative implementation of a consumption based charge
The document outlines a proposal to introduce a 'Charge' for carbon-intensive goods, such as steel and clinker, based on the EU ETS permit price and Best Available Technology (BAT) benchmarks. Drawing on the European excise system, it suggests a 'Production Sphere' where registered 'Carbon Keepers' and 'Carbon Warehouses' can handle goods under duty suspension, and a 'Consumption Sphere' where the charge is triggered upon sale to unregistered entities or final consumers. The report recommends a Carbon Monitoring and Control System (CMCS) for tracking movements and the use of de minimis thresholds for imports based on the ratio of carbon value to product value.
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Document type: Report