On 6 July, the environment committee, ENVI, adopted compromise amendments to the legislative proposal to extend the CBAM carbon border levy to new sectors along the steel and aluminium supply chains.
The report, led by Dutch S&D MEP Mohammed Chahim, was adopted by 56 votes in favour, eleven against, and twelve abstentions.
The adopted text scraps a controversial, temporary CBAM suspension clause, expands the Commission’s list of sectors to bring under the levy’s scope, and seeks to toughen anti-circumvention measures.
ENVI also adopted its stance on a temporary decarbonisation fund to compensate certain CBAM-covered sectors. The draft report, prepared by French Renew MEP Pascal Canfin, was adopted by 59 in favour, sixteen against, and twelve abstentions.
The adopted draft says the fund should offer support to certain EU exporters. Both drafts are due for adoption in the 14–17 September plenary, after which trilogue negotiations with the EU Council can begin.
While member states have already set their stance on CBAM’s extension, negotiations on the fund are stalling. On 6 July, ENVI also endorsed a June trilogue deal on the emission allowance reserve of the future carbon market for roads and buildings, ETS2.
