AEGIS Europe welcomes the legal study demonstrating that an EU ETS incorporating a CBAM, continued free allowances and a new export adjustment mechanism is WTO consistent

Brussels, 2 July 2021 – A legal study carried out by the law firms King & Spalding and Nctm confirms the WTO consistency of an EU ETS that incorporates a CBAM to address carbon leakage on imports, an export adjustment mechanism (CEAM) to address carbon leakage through the loss of carbon controlled exports and the continuation of free allowances. Fully integrated into the EU ETS, free allowances, the CBAM and the CEAM contribute to the EU’s GHG limitation and costing objective and cannot be considered as domestic or export subsidies.