EEX welcomes the Green Deal initiative as a pivotal step for Europe to achieve its ambitious 2030 and 2050 climate targets and assert its role as global climate action leader. Energy markets, and in particular power and emissions markets, will be a key instrument in delivering on Europe’s long-term climate ambitions.
With the Green Deal, Europe is setting out to intensify its efforts in global climate diplomacy. We welcome this course as it can make a significant contribution to both increasing global climate action efforts and aligning them, thereby facilitating cooperation. Introduction of a carbon border adjustment mechanism, if well designed, can be one element in a suite of different policy initiatives and actions contributing to this.
A possible carbon border adjustment mechanism should be as closely as possible integrated with the existing EU Emissions Trading Scheme. In its consultation response, EEX outlines key principles for such a mechanism should it be implemented.