The new EU border adjustment mechanism for CO2, “CBAM”, will start shortly. However, European climate protection ambitions should not put the German economy at an international competitive disadvantage, warns the German Chamber of Commerce and Industry (DIHK).
The “hasty and very bureaucratic implementation” of the “Carbon Border Adjustment Mechanism” (CBAM), which provides for a CO2 border adjustment tax for the movement of goods with third countries, means a considerable burden for many German companies, criticizes DIHK foreign trade chief Volker Treier. In order to prepare for the start scheduled for October 1st, the companies needed important information that was still missing.
In view of the legal uncertainty, especially with the highly complex calculation and verification methods, “improvements are urgently needed, for example in the form of de minimis limits and time extensions,” explains Treier. He calls on the relevant authorities of the federal government and the EU Commission to quickly launch a large information query and create a “CBAM self-assessment tool” that can particularly support small and medium-sized companies with administration.
Against “carbon leakage” – and competitiveness
“In times of the energy crisis, it is more important than ever for the German economy that European climate protection ambitions do not become an international competitive disadvantage,” sums up the DIHK head of foreign trade. “For energy-intensive industries, uniform conditions of competition are needed as globally as possible.”
Although CBAM addresses the “carbon leakage” problem for certain sectors of the economy – i.e. the phenomenon that companies relocate their activities to countries with low climate protection standards – it also puts a strain on the competitiveness of the export industry on global markets.
Treier: “It is therefore important to quickly implement the international climate club with all relevant trading partners in a binding form – also in order to avoid international trade conflicts.”
You can read the DIHK’s detailed statement on CBAM here.