UFE’s reply to the EC call for evidence CBAM – Methodology for the definitive period

UFE supports the principle underlying the Carbon Border Adjustment Mechanism (CBAM), which aims to preserve the competitiveness of European industry and prevent carbon leakage, in a context of increased climate ambition at European level. In this mechanism, the emission factor represents the carbon content in the price of electricity. The method for calculating emission factors must better reflect the impact of the CO2 price on the electricity price and the impact of real CO2 emissions on the electricity production. It is calculated in two ways according to a methodology defined in the Emissions Trading Scheme (ETS) State aid Guidelines: