Italy, France and Slovakia insist on amendments to CBAM

Time: Italy, France, and Slovakia are demanding that the EU make changes to the cross-border carbon adjustment mechanism (CBAM) this year to simplify the rules for companies subject to it. Reuters reports this with reference to the relevant document.

The European Commission has already proposed changes that would exempt 90% of companies from the border carbon levy, which will cover imports with high carbon emissions, such as steel and cement, starting in 2026.

The three countries call on Brussels to further simplify administrative policy rules. This could include allowing companies to use standardized emissions calculations for products, which could ease the reporting burden. France, Italy and Slovakia echo broader calls by some governments and companies for cutting red tape to help struggling industries regain competitiveness.

According to the document, the complexity of the CBAM can lead to delays and a significant increase in management and operating costs for European companies.

The three countries also emphasize that the EC should consider granting free carbon permits to European exporting companies to enable them to compete in global markets. China and some U.S. states also have carbon markets, but the price of emissions in Europe is much higher than in other major economies.

In the coming months, EU countries and legislators will have to discuss and approve the amendments to the CBAM proposed by the European Commission to make further changes to the rules.

As GMK Center reported earlier, the European Commission has officially published the rules for authorization of declarants of the cross-border carbon adjustment mechanism. The application process will open on March 28 this year, and applicants must submit their documents completely and accurately. Additional information may be requested during the process.

According to an updated estimate by GMK Center, Ukraine could lose $7.2 billion in GDP by 2030 as a result of the CBAM. Export losses over the same period may amount to $4.7 billion, of which $3.3 billion are steel products