Climate Friendly Materials Platform

Together with experts from the Climate Friendly Materials Platform, academia, think tanks, politics, unions and industry we will discuss how the Carbon Border Adjustment Mechanism (CBAM) can be further developed or reformed for sectors with complex value chains steel, organic chemistry and aluminium). Currently these sectors lack a reliable framework that incentivizes investment in climate-neutral production of basic materials and effectively limits carbon leakage risks. In particular, we will discuss the possibility of using standardized values to extend CBAM coverage to the full value chain and to exports using established border adjustment procedures.

This meeting envisages an in-depth discussion of one structural reform option: a shift from border adjustment based on production specific to standardized values for sectors with complex value chains.

Following a short characterization of the approach we will discuss:

• What are the opportunities and challenges for the different sectors?
• What are the opportunities and challenges for the manufacturing industries?
• What are the opportunities and challenges for the different MS?
• What are the international implications?