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Requirements for a Carbon Border Adjustment Mechanism

VDA Position, 16 July 2021

The President of the European Commission, Ursula von der Leyen, proposed a CO2 border adjustment measure at the beginning of her term of office. The aim should be to impose a levy on selected goods from countries with lower CO2 standards. This was also intended to protect industry in the EU from unequal competitive conditions and prevent "carbon leakage". In addition, the European Commission has brought the border adjustment levy into play as a possible additional financing instrument in a publication on the financing of its "Recovery Plan" (see p. 3 here). The VDA is committed to the goals of the Paris Climate Agreement and to greenhouse gas-neutral transport by 2050 at the latest. Achieving the climate protection goals of the Fit for 55 package will require enormous efforts by industry and society. The aim of the Paris Agreement is to achieve these efforts on a global scale, because climate protection policy is a global task that can only be solved jointly by the world community. Against this background, the VDA has formulated requirements for the design of a possible CO2 limit compensation mechanism.

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