Ref. Ares(2021)4960902 - 04/08/2021
Meeting on CBAM with EDF – 15 January 2021
Participants:
ENER
EDF
Summary of main points raised
After inquiring about the state of the process, EDF raised several points. EDF is not one of the main
actors concerned by CBAM, but nevertheless cares about it as it can have impact on its customer
base, especially in industry. There are several issues of concern
1. One of the options in the public consultation contained the inclusion of imports into the EU
ETS framework. That could lead to unforeseen consequences, destabilize the market. It is
important for all investors to have price stability and this would not serve to increase it.
2. The form of the measure. One of the options in the public consultation hinted at the
possibility of imposing a carbon tax, and thereby burdening the final consumer directly. That
would be very dangerous as far as public perception is concerned. These kinds of measures
were the main bone of contention for the yellow vest protest movement in France.
3. Inclusion of electricity is not problematic. It can be done relatively easily. However, if
electricity is covered so should be other energy carriers such as natural gas or hydrogen.
Hydrogen produced in Morocco from the local grid is going to have a much larger carbon
footprint than hydrogen produced in the EU. Al fuels are in competition in the EU energy
market.
ENER replies:
A. All options are still on the table. COM is aware of the problems and risks associated with
each of them. COM is interested in making the EU ETS work and sending the right price
signal.
B. All options are still on the table. COM is aware of the problems and risks associated with
each of them.
C. All options regarding the sector choice are still on the table. The list that will published in
June does not have to be final. Sectors may be added at a later stage. Hydrogen
transportation projects across EU borders have so far not been detected as an imminent
threat of carbon leakage. The technology is not available yet and may not be for years, if not
decades.