EMISSIONS
The possible two-year delay of CBAM could lead to the EU’s innovation fund being lowered to €9bn from €18bn, with the investment in “clean” technologies reduced by €20bn between 2026-30, according to WorldWide Fund for Nature’s latest report.
- This comes as the free EUAs allocation phased out to the CBAM sectors from 2027 will be auctioned, and the revenues will accrue to the Innovation Fund to support clean technologies investments – delaying the move to 2028 reduces the amount of revenues accumulated.
- The group urged to increase the allowances allocated to the Innovation Fund and end free allocation for all sections by 2030 versus the 2034 deadline for CBAM-covered sectors set by the EU Commission.
- Additionally, CBAM should expand the scope of the sectors covered, including bulk chemicals, and refined fossil fuels; and should include indirect emissions for all products, the fund said.
The report comes after the obligation to purchase and hold CBAM certificates quarterly is proposed to be postponed to 2027 from 2026, but the costs associated with emissions embedded in 2026 will still apply and are due to be declared in 2027, according to a leaked EC draft document obtained by Redshaw Advisors on 24 February.
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