UFE’s position paper on the implementation of CBAM on electricity

Linking the EU ETS with the UK ETS to address the negative consequences of the implementation of CBAM on electricity.

The Carbon Border Adjustment Mechanism (CBAM) is a European regulatory framework designed to impose on imported goods the same carbon costs borne by EU industries in producing equivalent products. It applies to imports of iron, steel, cement, fertilisers, aluminium, hydrogen, and electricity.

Given the context of strengthening climate ambition at the European level, the objective of CBAM is to preserve the competitiveness of European industry and to prevent carbon leakage. UFE therefore supports the principle underlying CBAM.