The European Commission (EC) has announced that it has begun conducting a study to explore the necessity and feasibility of extending the scope of the Carbon Border Adjustment Mechanism (CBAM) in a bid to include downstream products.
According to the statement, the aim of the extension is to reduce the risk of carbon leakage of upstream CBAM products as well as downstream products. Moreover, the study will create calculation, monitoring and reporting rules for products’ embedded emissions and will evaluate the compliance costs and administrative burden for declarants and importers if the scope of the CBAM were to be extended to certain downstream products.
Under the study, the EC is also carrying out a survey until October 25, in which both evidence and perspectives of the stakeholders in relation to an extension of the scope of the CBAM to downstream products will be collected.