ERCST - European Roundtable on Climate Change and Sustainable Transition

📌On Tuesday, the European Roundtable on Climate Change and Sustainable Transition (ERCST) hosted the Expert Consultation "Extension of the CBAM scope ". 𝗧𝗵𝗲 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: ✅ Extending #CBAM aims to prevent carbon leakage and circumvention across value chains, but faces a critical balancing act between environmental goals and the significant administrative complexity and burden it introduces, especially for downstream products.   ✅ A major concern is the impact on #EU industry competitiveness, particularly for export-oriented sectors. Increased costs for imported materials under an expanded CBAM could harm downstream producers, highlighting the urgent need for effective export solutions.   ✅ The discussion revealed significant differences between sectors (like chemicals, ceramics, cookware, machinery). A one-size-fits-all expansion is deemed unworkable due to varying value chain complexities, trade exposures, and methodological challenges, necessitating sector-specific assessments. ✅ Many experts urge caution, emphasizing the need to learn from the current CBAM implementation, address existing challenges (like data gathering and potential circumvention), and explore complementary #policy tools before pursuing broad scope extensions. There was an exchange of views with experts that presented their views and expanded on key issues, setting the scene for an in-depth discussion. 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

🇪🇺 As the #EU considers using international carbon credits to meet its 2040 climate target, questions arise over credibility and ambition. 🎙️ ERCST Executive Director Andrei Marcu highlights that such a move could be welcomed by developing countries in need of climate finance. 🗞️ Read the full Kate Abnett article via Reuters 👉🏼 t.ly/K5db8 #ClimatePolicy #CarbonMarkets #EUClimateTarget 

🇪🇺🔋 War & Transition: The Energy Future of Central & Eastern Europe In the face of growing geopolitical tensions, how can Central and Eastern European economies strike the right balance between: ✅ Energy security ✅ The EU’s climate ambitions ✅ Affordability & competitiveness   🛡️ These critical questions took center stage at the recent debate “War and Transition – Energy Interests of Central and Eastern European States”, organised by OSW – Ośrodek Studiów Wschodnich / Centre for Eastern Studies, Poland in cooperation with ORLEN S.A. and Business & Science Poland. The event was held under the official patronage of the Polish presidency of the Council of the European Union and Ministerstwo Klimatu i Środowiska.   📋 The discussion was opened with a presentation of a key analytical report: “Energy Policy in Times of War and Transition: Priorities of the Central and Eastern European Countries and Germany” 📊 Presented by: Agata Loskot-Strachota - Project coordinator Energy in Europe Project OSW – Ośrodek Studiów Wschodnich / Centre for Eastern Studies, Poland 👉 Link to the report in the first comments 👏 A big thank you to Arkadiusz Pluciński, Deputy Permanent Representative of Poland to the EU, for an important keynote speech! The debate featured: 🔹 Krzysztof (Chris) Bolesta, Deputy Minister of Climate and Environment of Poland 🔹 Zygimantas Vaiciunas, Minister of Energy of Lithuania 🔹 Martin Hojsik, Vice President of European Parliament (Slovakia) 🔹 Victor Grigorescu, Energy expert, former Minister of Energy (Romania) 🔹 Stanisław Barański, Director of Sustainability and Energy Transition Office at ORLEN S.A. (Poland) 🧭 Moderated by: Andrei Marcu, Executive Director of ERCST - European Roundtable on Climate Change and Sustainable Transition 🎯 The main takeaway from the discussion was that, as the EU, we must act faster and ensure that in the process of reducing dependencies on one third country, we strengthen our autonomy to avoid falling into dependencies on other third countries. #EnergySecurity #CEE #ClimatePolicy #EUEnergy #Geopolitics #EnergyTransition

As the EU prepares to submit its updated Nationally Determined Contribution (NDC) ahead of COP30 in Belém, a defining moment is approaching, one that will shape both its climate policy and economic trajectory. The world is watching how the EU will balance ambitious decarbonisation goals with industrial competitiveness. This crucial decision will have lasting implications for the region’s economic resilience and global climate leadership. In a new Carbon Pulse Comment, Andrei Marcu, ERCST Executive Director, and Michael Mehling, ERCST Senior Fellow, explore the critical implications of this process. 🔗 Read the full article here👉🏼 t.ly/UHhr5 #ClimatePolicy #EU #COP30 #Decarbonisation #Sustainability

🚨 A new ERCST publication is out! 👇 🔹 Policy Tracker: Clean Industrial Deal – Flagship actions 🔎 The Clean #Industrial Deal sets out a list of legislative proposals, action plans, initiatives, and acts (Flagship Actions) to be published by the European Commission. 💡This document provides an overview of those proposals and their publication timeline. 📄Read the publication here 👉🏼 t.ly/LdPbn

📌Yesterday, the European Roundtable on Climate Change and Sustainable Transition (ERCST) presented its new paper "Future of Emissions Trading in the EU: Price signal and competitiveness". 🎯 𝐅𝐢𝐧𝐝𝐢𝐧𝐠𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐫𝐞𝐩𝐨𝐫𝐭: ✅ The importance of the relationship between EUA prices and costs, where costs impact competitiveness of industry; ✅ Costs resulting from EU #ETS and broader climate change policy cannot be a burden to put into question the viability of industry; ✅While prices are needed to drive #decarbonisation, costs need to be managed and partially socialized, and the role of free allocations further examined; ✅Effective measures must be put in place to level the playing field, which are not yet there under current legislation. There was an exchange of views with experts that presented their views and expanded on key issues related to the paper’s findings. Their expertise brought additional depth and practical insights into the discussions, enriching the conversation with diverse perspectives: 🟢Andrei Marcu, ERCST 🟢Anna-Maria Karjalainen, International Copper Association Europe 🟢Lidia Tamellini, Carbon Market Watch 🟢Mathilde Painchart, EDF 🟢Jostein Røynesdal, Norsk Hydro 🟢Nigel Caruana, ERCST 🟢Pauline Nouallet, ERCST 📄 Read the paper👉🏼t.ly/XdHOO 📹 Watch the recording 👉🏼t.ly/MZ-Tf 🔎Read more 👉🏼 t.ly/T25I7 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

📌Yesterday, the European Roundtable on Climate Change and Sustainable Transition (ERCST) presented its new paper "Solutions for exports of EU CBAM-covered goods". 𝗧𝗵𝗲 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀: ✅ 𝐄𝐱𝐩𝐨𝐫𝐭-𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐜𝐚𝐫𝐛𝐨𝐧 𝐥𝐞𝐚𝐤𝐚𝐠𝐞 𝐭𝐡𝐫𝐞𝐚𝐭: The #CBAM lacks export provisions, threatening EU industries like steel, aluminum, fertilizers, and cement. Without safeguards, they risk losing competitiveness to rivals in countries with weaker climate rules, leading to job losses, economic harm, and higher global #emissions, jeopardising economic stability and climate goals. ✅ 𝐄𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐦𝐞𝐚𝐬𝐮𝐫𝐞𝐬 𝐚𝐫𝐞 𝐢𝐧𝐬𝐮𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭: Alternatives like grants, loans, tax incentives, low-carbon input supply, and #government procurement fail due to sectoral disparities, uncertain outcomes, high costs, and misalignment with imminent #carbon leakage risks when CBAM liabilities start in 2026. ✅ 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐝 𝐬𝐨𝐥𝐮𝐭𝐢𝐨𝐧: A targeted fix, non-tradable export adjustment certificates based on export share, convertible into #EU ETS allowances using ETS benchmarks. This mitigates leakage, preserves #decarbonisation incentives, leverages existing systems, and reduces WTO legal risks. The system would be transparent, dynamic, and subject to review as decarbonization advances. ✅𝐖𝐓𝐎 𝐜𝐨𝐦𝐩𝐚𝐭𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐫𝐞𝐦𝐚𝐢𝐧𝐬 𝐚 𝐜𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞 𝐛𝐮𝐭 𝐜𝐨𝐧𝐭𝐞𝐱𝐭 𝐢𝐬 𝐬𝐡𝐢𝐟𝐭𝐢𝐧𝐠: WTO rules classify #export rebates as prohibited subsidies, but shifting global trade norms, particularly in the U.S., prompt debate on a bolder EU stance. CBAM’s WTO legality is untested, so adding export provisions only slightly increases an existing risk, justifiable to protect industry.   ✅𝐔𝐫𝐠𝐞𝐧𝐜𝐲 𝐚𝐧𝐝 𝐛𝐫𝐨𝐚𝐝𝐞𝐫 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬 𝐜𝐨𝐧𝐜𝐞𝐫𝐧𝐬: 2025 is pivotal, with CBAM reviews mid-year and growing pressures from overcapacity, trade barriers, and energy costs. Panelists stress swift action to safeguard EU industry while balancing climate goals. The #Commission plans a communication on exports by May 2025, with further plans for downstream goods and resource shuffling by year-end. There was an exchange of views with experts that presented their views and expanded on key issues related to the paper’s findings. Their expertise brought additional depth and practical insights into the discussions, enriching the conversation with diverse perspectives: 🟢Vicente Hurtado Roa, DG TAXUD - European Commission 🟢Paweł Różycki, Ministerstwo Klimatu i Środowiska 🟢Michael Grubb, UCL 🟢Mathieu Spoidenne, ArcelorMittal 🟢Sam Van den plas, Carbon Market Watch 🟢Yves Melin, Cassidy Levy Kent LLP 🟢Laure Fleury, ERCST 🟢Michael Mehling, ERCST 🟢Aaron Cosbey, ERCST 📄 Read the paper👉🏼t.ly/daFvZ 📹 Watch the recording 👉🏼t.ly/rGvtq 🔎Read more 👉🏼t.ly/ovgSh 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

From 10 to 14 March 2025, Director-General (Climate Change) Benedict Chia and Chief Negotiator for Climate Change Joseph Teo led an inter-agency delegation from the National Climate Change Secretariat, Singapore, Ministry of Sustainability and the Environment, Singapore, and Ministry of Foreign Affairs (MFA) Singapore to Tokyo. During their visit, they participated in the Article 6 Implementation Partnership (A6IP) Advisory Group Meeting; the 23rd Informal Meeting on Further Actions Against Climate Change; and the ERCST - European Roundtable on Climate Change and Sustainable Transition Informal Forum on Implementation of Article 6 of the Paris Agreement. The delegation also held bilateral meetings with counterparts from Japan’s Ministry of Environment, Ministry of Foreign Affairs, Ministry of Economy, Trade and Industry, and Financial Services Agency. Picture Credits: Institute for Global Environmental Strategies (IGES)

📌IT'S TOMORROW! #ETS | "Future of Emissions Trading in the EU: Price Signal and Competitiveness" 📆 27 March - 10:00 - 12:00 👥Register in-person 👉🏼 t.ly/7ivbq 🖥️Register online 👉🏼 t.ly/8le1b Last chance to register at the launch event of the ERCST report on the "Future of Emissions Trading in the #EU: Price Signal and Competitiveness". 🎯𝐊𝐞𝐲 𝐩𝐨𝐢𝐧𝐭𝐬 This event will cover the Price signal and competitiveness Report. This is the third report of the Future of Emissions Trading in the EU project. During this event the report will be presented by the authors and discussed with participants. The discussion will focus on a number of questions: ✅How to ensure a long-term price signal? ✅How can existing carbon leakage instruments (#CBAM, fee allocation) interact with competitiveness concerns? ✅How can carbon revenues and funding instruments support competitiveness and generate price signal? The panel will include: 🟢Andrei Marcu, ERCST 🟢Anna-Maria Karjalainen, International Copper Association Europe 🟢Lidia Tamellini, Carbon Market Watch 🟢Mathilde Painchart, EDF 🟢Philippe Adriaenssens, European Round Table for Industry - ERT 🔎Read more 👉🏼 t.ly/T25I7 📅 Stay informed about our upcoming events 👉🏼 t.ly/ya6OM

Yesterday, I had the opportunity to attend the seminar "Enabling a Sustainable Hydrogen Market Ramp-Up" at the UN’s Palais des Nations in Geneva. The event marked the beginning of UNECE’s 2025 Resource Management Week, setting the stage for critical discussions on sustainable resource management and clean energy transition. 🌍 Organized by the Oxford Institute for Energy Studies, RIFS Research Institute for Sustainability | at GFZ, United Nations Economic Commission for Europe (UNECE), and the Florence School of Regulation, the seminar provided a platform to discuss key pillars for scaling up hydrogen markets: ✅ Hydrogen Infrastructure – Addressing the current state of play and challenges in transport and storage, including pipelines, underground storage, and maritime shipping. ✅ Sustainability Credentials of Hydrogen – Examining regulatory and certification frameworks, as well as exploring sustainable finance for hydrogen. The seminar featured EU and international industry experts, policymakers, and researchers. A huge thanks to the organizers and participants for such an insightful exchange! #Hydrogen #Sustainability #CleanEnergy #UNECE #EnergyTransition #HydrogenInfrastructure