Number of countries seeing EU cross-border carbon regulation as mechanism to limit competition growing - Russian presidential representative

BAKU. Nov 20 (Interfax) - The number of countries that see the Carbon Border Adjustment Mechanism (CBAM) as a unilateral measure for raising the EU's competitiveness is growing, Boris Titov, Russia's special presidential representative for relations with international organizations to achieve sustainable development goals, told Interfax.

"As for the CBAM mechanism, the number of countries that see it as violating the Paris Agreement and a unilateral mechanism for raising the European Union's competitiveness is indeed growing," Titov told Interfax on the sidelines of the COP29 conference.

The unacceptability of market discrimination under the pretext of fighting climate change was noted at the recent G20 summit in Brazil, Titov said. "The G20 leaders agreed that measures for fighting climate change, including unilateral measures, should not constitute a means for arbitrary or unjustified discrimination or covert restriction of international trade. The G20 leaders' message is a direct message to COP29," he said.

The EU's Carbon Border Adjustment Mechanism involves importers of goods paying a carbon tax equivalent to payments for greenhouse gas emissions made by European manufacturers of similar products. It is assumed that CBAM will solve the problem of carbon leakage, whereby carbon-intensive production is transferred to countries with weaker regulation of greenhouse gas emissions, as producers inside and outside Europe will have to operate on equal terms.

Representatives of the Russian Economic Development Ministry have previously said more than once that the climate agenda, and in particular instruments like CBAM, are turning into a means for protecting the European market against competition. Various Russian agencies have repeatedly expressed doubts that CBAM complies with the standards of the World Trade Organization. Russia has maintained this position at UN climate conferences for several years.