Agora Industrie
From January 2026, the EU’s 🇪🇺 Carbon Border Adjustment Mechanism ( #CBAM) will start placing a fee on carbon-intensive imports, while free allowances under the EU carbon market (ETS) are reduced. But as it only tackles carbon leakage on imports, an important question remains: how can Europe protect exporters while staying on track for #climateneutrality? 🌍1/x
Nov 24 at 10:04amWeb
Show threadAgora IndustrieNov 24
Our new analysis together with @AgoraEW shows that a small but important share of exports will remain exposed. Around 40% of CBAM-sector exports go to countries with similar carbon pricing – but the rest go to markets where carbon prices are much lower or non-existent. Our proposal: a long-term export adjustment to keep decarbonising companies competitive abroad. ⚙️ 2/x
Show threadAgora IndustrieNov 24

We suggest compensating exporters with ETS allowances for the share of production that is verified as exported, starting in 2028. This compensation would:

📉 decline over time
🎯 be benchmarked to the top 10% best-performing installations
✅ be conditional on real emissions reductions 3/x

Show threadAgora IndustrieNov 24
The mechanism should be effective, environmentally robust, non-discriminatory, simple and transparent – only covering verified exports and only bridging the carbon cost gap between the EU and destination markets.
At the same time, tackling export leakage is just one piece of Europe’s industrial transformation. 4/x
Show threadAgora IndustrieNov 24

We also need:
🏷️ strong and predictable carbon prices
⚡ affordable energy through accelerated renewables buildout
💶 de-risked clean investments
🌱scaling up green #leadmarkets

Such a package alongside an export adjustment would help keep climate-neutral industrial products competitive worldwide, anchor investments and strengthen Europe’s economy. 5/x

Show threadAgora IndustrieNov 24
Download to the full slide deck here: https://www.agora-industry.org/publications/addressing-exports-under-the-eu-carbon-border-adjustment-mechanism
Addressing exports under the EU Carbon Border Adjustment Mechanism​

Solutions against carbon leakage risks

Show threadHarald GeyerNov 24

@AgoraInd Can you make your proposal compliant with WTO rules?

AFAIK concerns about the WTO treaties are, what kept the EC from implementing such a mechanism in the first round of CBAM. I know this is ridiculous, but apparently that's what the treaties are ...