Debate: Revision of the EU Emissions Trading System - Social Climate Fund - Carbon border adjustment mechanism - Revision of the EU Emissions Trading System for aviation - Notification under the Carbon Offsetting and Reduction Scheme for International Aviation
Date: TUESDAY, 7 JUNE 2022
Speaker: Mohammed Chahim
Country: Denmark
Language: EN

For our European climate ambitions CBAM is a crucial part of Fit for 55. It is the only tool we have to incentivise global climate action. And it’s historic because we are in fact extending our own emission trading system, our own CO2 legislation, to the rest of the world. And the positive effects will be twofold. First, we incentivise our trading partners to take climate action seriously. And second, we are levelling the playing field and apply the same CO2 price for imported products as we do for our own European producers. And thanks to this level playing field, we can finally phase out our current carbon leakage measures – the so-called free allowances. Because they are preventing us from truly applying the polluter—pays principle. And the compromise we have is a very reasonable compromise. It balances between the starting date of CBAM and the phasing—out date of the free allowances. It covers the right sectors and emissions. Some want us to have a CBAM and keep the free allowances. And I can tell you, my friends, you cannot have your cake, eat it too, and get the cherry on top. It frustrates me that at the same time, these people pretend to fight for the cause of the Climate Law. I take the Climate Law very seriously, so let’s not make laws knowing we will break them. So how do I see the future of Europe, or how do you see the future of European industry? Because that’s the most fundamental question we should ask ourselves. What do we envision the industry will look like in one or two decades? CBAM creates a level playing field and helps us preserve jobs. We need to stop our fossil fuel addiction. If the current Ukraine crisis did not make us aware of this, then what will? And ‘business as usual’ will become more and more costly. The price of doing nothing will be unbearable. We need to start producing in a clean and sustainable way. Let’s not lose our global advantage. And it’s very tempting to listen to lobbyists, and it’s hard to counter their arguments because the Fit for 55 package is very complicated. And while their CEOs tell you that they are in favour of all the climate action, their representatives, their lobby machine demands the exact opposite. And only taking current interests into consideration makes you blind for the future. Because I see many front runners in the EU that are willing to scale up to make sure that we find the crucial elements to decarbonise and keep our leading position, our competitiveness compared to the rest of the world. And these voices are not always heard, not always heard in this Parliament, because they do not have the capacity to lobby as many other big companies have. And our task as Parliament is to listen to these voices of the future, because in a couple of decades, we can decarbonise our industry, be state—of—the—art and leading clean production worldwide. That’s what I envision if we make the right choices this week. Not only supporting industry that needs heavy subsidy to survive. And the front runners are popping up all over the world. We are not leading in every sector. There are sectors outside the EU that produce with a lower footprint. And one of my key motivations as a Social Democrat in supporting the Green Deal is that I see we can create new jobs and that we can decarbonise. We can lead the world in fulfilling the Paris Agreement with more than just words. Companies will determine at one point if they stay in the EU or not – not on the basis of the CO2 price, but whether we have enough green molecules, whether our electricity grid is strong and green enough for them to decarbonise. We see this already happening. You only have to zoom in to see it. And if it comes to free allowances, we are using hundreds of billions of public money to continue investing in fossils. Unconditioned free allowances are not working the way they should. They are not helping us decarbonise. We need to redirect investment to the right companies that help us thrive and win the global race of decarbonisation. The train of decarbonisation is running and the question is, are we going to catch the train, or are you going to leave that bus? The vote is tomorrow. So we have one day left. Maybe instead of reading emails of lobbyists, it is time to listen to our children and grandchildren and the voices of young generations. It is time for the European Parliament to deliver what is needed for the Climate Law and for future generations.