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European Union Green Deal: Got in the CBAM

President of European Union Commission, Ursula von der Leyen
European Union Green Deal: Got in the CBAM

InfoSAWIT, JAKARTA – By the late of 2022, European Union (EU) initiated European Green Deal. The deal was got in Carbon Border Adjustment Mechanism (CBAM). According to the official statement of EU with the theme European Green Deal: Agreement reached on the Carbon Border Adjustment Mechanism (CBAM), it means that it can get European Union Green Deal.

CBAM is significant tool for EU to decide normal price on carbon emission during producing product(s) with carbon intensive that would be sold in EU, and encourage to get cleaner production in non – EU countries.

The deal would be completed by revising Emission Trading System (ETS) by having negotiation that ran by the late of 2022 and would harmonize to stop freely allowance allocation by introducing CBAM to support decarbonization in EU industries.

EU thought, climate change is a global issue that needs solution in the globe. EU now escalates its own climate ambition. As long as less close climate policy takes place in non-EU countries, there would be risks to ‘carbon leak’.

Carbon leak would happen if companies in EU move their carbon production intensively abroad or the countries where climate policies are less close than those in EU or when EU products are substituted by import ones which are more intensively to produce carbon.

That is why, by the late meeting among President of European Commission, CBAM Board, and EU Parliament did welcome the positivity for the political deal.

President of European Commission, Ursula von der Leyen said in the meeting that she did welcome the political deal today for the proposal – Carbon Border Adjustment Mechanism. “This is the main part of our European Green Deal to prevent the risks of carbon leak. This is a breakthrough for we would escalate our climate ambition,” Ursula said in the meeting. (T1)