The EU Parliament has surprisingly postponed the vote on the CO2 border adjustment (CBAM). Thilo Brodtmann, Executive Director of the VDMA, comments:

"The EU has particularly demanding climate targets: the border adjustment mechanism CBAM was developed to prevent so-called carbon leakage. It is intended to raise create an level playing field between imports from regions with lower climate ambition levels and European production. However, exports and export-oriented European industries such as mechanical and plant engineering were forgotten.

Today's postponement of the vote in the EU Parliament thus offers the opportunity to further develop the highly sensitive CO2 border adjustment in a second attempt. Exports of machinery and equipment, for example, must not be put at a competitive disadvantage as it is precisely these technologies that are also urgently needed worldwide to achieve the Paris climate targets. In addition, the entire CBAM system must be designed in accordance with World Trade Organization rules to prevent countermeasures by other countries."

A photo of VDMA executive director Thilo Brodtmann can be found here.

The VDMA represents more than 3,400 German and European companies of the mechanical engineering industry. The industry stands for innovation, export orientation and medium-sized businesses. The companies employ around four million people in Europe, more than one million of them in Germany. Mechanical and plant engineering represents a European turnover volume of around 800 billion euros. With a net value added of around 270 billion euros, it contributes the highest share of the entire manufacturing sector to the European gross domestic product.