FRENCH PRESIDENCY PRESENTS CBAM COMPROMISE TEXT
On 4 March, the French Presidency of the Council presented a compromise text on the Carbon Border Adjustment Mechanism, accompanied by a Presidency report on the state of play of the Council negotiations on the file. Compared to the Commission proposal, the compromise text amends the stakeholder setting by introducing CBAM-related liabilities for EU-based importers and removing the burden of CBAM compliance from European customs brokers when representing EU customers. Regarding enforcement, the compromise text focuses on penalties and takes away the possibility for Member States to impose criminal or administrative sanctions. Unlike Rapporteur Mohammed Chahim (S&D, The Netherland)’s draft report, the French Presidency’s text maintains a restricted scope of the mechanism and a decentralised system of CBAM management.
The compromise text will be used as basis for final negotiations between the Member States on the Council’s General Approach. Certain aspects relating to the implementation of the CBAM remain to be further discussed within Council Working Party level in the coming months. That does not prevent the General Approach on the file to be adopted next week within the Economic and Financial Affairs Council, which will provide the Presidency with a mandate to open informal trilogues.