In this episode of ICAP's Carbon Market Conversations, host Trevor Laroche-Theune discusses the EU carbon border adjustment mechanism (CBAM) with Prof. Dr. Daniel Klingenfeld of the German Emissions Trading Authority. Today’s conversation covers CBAM’s expected international implications, the current status of implementation processes since the introduction of the instrument’s transitional phase in 2023, and the challenges and opportunities that lie ahead. A more detailed breakdown of the topics explored and where you can listen to them is listed below:
1:15 - Introduction to our guest, Prof. Dr. Daniel Klingenfeld of the German Emissions Trading Authority2:12 - CBAM explainer4:00 - CBAM implementation timeline4:55 - CBAM’s current and expected impacts on climate ambition and emissions levels7:42 - Most affected countries10:00 - Influence of CBAM on recent global carbon pricing developments (Türkiye example)11:53 - Other CBAM proposals (United States example)13:40 - Comparing excise duties on fossil fuels to carbon pricing through a CBAM lens15:15 - CBAM’s effect on Germany and importers’ perspectives17:48 - Standard factors for carbon content vs. actual emissions data18:27 - CBAM actor line of responsibilities20:48 - Insights from first few months of implementation23:05 - Deadline for emissions data24:00 - Further challenges and opportunities in CBAM’s transitional period27:14 - The core challenge of technical implementation that we must get right and how we can work toward solutions30:00 - Closing remarks
More information about the German Emissions Trading Authority (DEHSt) and CBAM can be found below:German: https://www.dehst.de/CBAMEnglish: https://www.dehst.de/cbam
More information about ICAP can be found here: https://icapcarbonaction.com/en