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Research into the effects of carbon tax at the EU external border on the Netherlands

Unofficial translation

State Secretary Vijlbrief of Finance has presented the ex-ante study into the effects of a carbon tax at the external border of the EU (Carbon Border Adjustment Mechanism, CBAM) on the Netherlands to the House of Representatives.

The aim of the study is to estimate the effects of a CBAM on the carbon leakage risks in Dutch industries. This in view of the announced, and now published, proposal for a CBAM by the European Commission (EC). The research was conducted by research agency Trinomics. Trinomics has also written an addendum to the study, describing the impact of the EC’s proposal for a European CBAM on the findings of the main report.

The addendum shows that the phased introduction of CBAM in the first years will result on average in a net cost reduction for the Dutch fertilizer sector and base metals industry compared to a situation without CBAM. In later years, the risk of CO2 leakage increases in these sectors.

The government will use the study to further determine the position of the Commission proposal and will inform the House of this shortly.

Source Taxlive.nl

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