The Declaration on CBAM Revenue Use

Organisers: ERCST

Once the CBAM progresses from the current transitional to the definitive period starting in 2026, after which its implementation will incur a financial obligation on importers, it will also begin yielding revenue that is proportional to the prevailing carbon price under the EU ETS as well as the carbon intensity and volume of imported goods covered by the CBAM. Not only will the revenue collected under the CBAM increase as the mechanism is gradually phased in over the course of nearly a decade, but the simultaneous phasing out of free allocation will also increase the revenue generated from allowance auctioning under the EU ETS.

The goal of this side event is to elaborate on possible options for EU CBAM revenue use. The discussions will be based on The Declaration on the Use of CBAM Revenues. During this side event participants will be invited to discuss the following details of EU CBAM revenue use:

• how the EU should use the revenues generated from the sale of CBAM certificates?
• to whom the potential recycled revenues could be distributed and how the recycling should function?

Moderator: Andrei Marcu, ERCST

Speakers:

• Andrei Marcu, ERCST
• Michael Mehling, ERCST/MIT
• Aaron Cosbey, ERCST/IISD (Virtual participation)
• Kateryna Holzer, University of Eastern Finland
• Vitor Vaz, Ministry of Foreign Affairs, Brazil
• Simone Borghesi, European University Institute
• Clara Brandi, IDOS (Virtual participation)
• Johanna Lehne, E3G (Virtual participation)