The European Commission began consulting on a draft implementing regulation on 13 May, which defines rules for potential rebates on the CBAM tax on carbon-intensive imports for goods subject to non-EU carbon pricing.
The text says EU importers of goods whose emissions have been partly offset through the purchase of carbon credits under a local carbon pricing system could receive a discount on the CBAM certificates they must purchase.
The draft act differentiates between “domestic” credits and “international” credits. Rebates for the former, corresponding to national decarbonisation projects, would not be subject to any conditions; those offered for projects beyond a nation’s own jurisdiction would have to comply with conditions laid out in Article 6 of the Paris Agreement.
International credits may also represent only up to 10% of the emissions declared by the installation subject to the carbon pricing scheme.
At the moment, only Japan, South Korea and Vietnam allow international credits to be used as part of their carbon markets, according to the International Carbon Action Partnership.
The consultation runs until 10 June. The Commission also published stakeholders’ input on the draft.
