EU CBAM Impact Study
EU Carbon Border Adjustment Mechanism impact study focused on electrical imports from Great Britain
The Impact study was carried out to offer an impartial evaluation of the possible consequences of the EU CBAM
Today, a report on the impact of the EU Carbon Border Adjustment Mechanism (CBAM) on electricity imports from Great Britain has been published. The study was carried out by AFRY Management Consulting, and was commissioned by a group of interconnectors, including BritNed, to offer an impartial evaluation of the possible consequences of the EU CBAM.
The study has identified two issues with the method of application of CBAM to electricity imports from GB:
- Risk of significant over-statement of emissions assumed for electricity imports from GB, as values based on carbon intensity of historic fossil fuel generation are likely to be applied.
- Excessive carbon price exposure for imports from GB, linked to practical obstacles to demonstration of a carbon price having been paid in GB by emitting generation and exposure of GB zero-carbon generation to carbon costs.
These issues unduly increase the cost of electricity imports into the EU from GB, presenting the following adverse outcomes:
- Putting at risk development of offshore grid/cross-border infrastructure needed for the energy transition;
- Harming delivery of decarbonisation policies by presenting barriers to low carbon projects; and
- Frustrating efficient market operation by unduly blocking flows that would otherwise be economic.
The objective of BritNed is to connect the NL and GB markets in the most efficient way. The EU CBAM, in its current form, could create a significant trade barrier, resulting in a reduction in EU electricity imports from GB, which would negatively impact the energy trilemma and the energy transition. Action is needed to ensure efficient use of cross-border capacity.
Download the impact study reports
Learn more about CBAM
Learn more about CBAM, including CBAM obligations for imports into the Netherlands and how to report during the transitional period, on our dedicated CBAM page here.
