Ref. Ares(2021)3514190 - 27/05/2021
Ref. Ares(2021)4361847 - 05/07/2021
Meeting with Mr Thomas,
Director General DG TAXUD
Mr Jacob Hansen, Director General of Fertilizers Europe
Mr Marco Mensink, Director General of CEFIC
16 April 2021
The Chemical Sector and Decarbonization
The Fertilizer Sector and Decarbonization
Cefic Position on the Carbon Border Adjustment Mechanism
Key features of the chemical industry
Strong export orientation (> 25% of production)
Long and complex value chain within the sector – and downstream
High carbon/investment leakage risk for energy-intensive base chemicals and heavily traded
intermediate commodities (e.g. polymers)
Key principles / criteria that need to be observed for any CBAM
Export competitiveness must be safeguarded
Value chain circumvention to be avoided
Current carbon leakage safeguard must not be compromised
Cost and complexity must be minimised, while the framework must be robust
Transition mechanisms (retention of free allowances/indirect cost recoveries over a sufficient
Adjustment mechanisms as trading partners introduce comparable CO2 pricing measures for
the chemical sector
WTO compatibility must be ensured
Promote international dialogue to avoid trade conflicts
Fertilizers Europe Position on the Carbon Border Adjustment
Necessary complement to ETS
Carbon border contribution depending on emissions
above ETS benchmark.
Individual importers can obtain individual EU verified
EU producer Foreign producer
Maintain free allowances minimum 2030 to ensure
competitiveness for the EU industry and value chain.
CBAM sectors should not be punished under ETS.
Inclusion of exports.
Covering ammonia (Chapter 28 in customs nomenclature),
nitric acid (28), finished nitrogenous fertilizers (31) and
selected technical products.
Thank you for your attention