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
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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
period)
•
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
Mechanism
Necessary complement to ETS
Principles:
To be
•
Carbon border contribution depending on emissions
paid
above ETS benchmark.
•
Individual importers can obtain individual EU verified
Free
certificates.
Allocation
EU producer Foreign producer
Conditions:
under ETS
under CBAM
•
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.
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Thank you for your attention
Contact:
xxxxx.xxxxxx@xxxxxxxxxxxxxxxxx.xxx
www.fertilizerseurope.com
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