AmCham EU reply to survey on Transatlantic Initiative on Sustainable Trade
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CBAM extension: get implementation right before expanding scope
The Carbon Border Adjustment Mechanism (CBAM) will test whether the EU can address carbon leakage while keeping investment in Europe. As implementation of the CBAM advances, companies face costs and reporting duties under rules that are still taking shape. Preventing carbon leakage matters. However, the CBAM should work in practice before scope extension is considered. Moving too soon could place burdens on companies and disrupt value chains, with consequences for investment and trade. The focus should be on avoiding measures that introduce further uncertainty and extending proposed safeguards in the Temporary Decarbonisation Fund beyond 2027. Learn how to shape the CBAM so it prevents carbon leakage while maintaining competitiveness.
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