Date: 10 June 2021
Time: 2:00 PM UTC
Duration: 90 min
Language: English
Format: Online
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Worldwide: Luther Reset Series: Green Tax - Carbon Border Tax

In December 2019, the European Commission adopted its Communication on the European Green Deal. The key measures envisaged include the proposal for a so-called "Carbon Border Adjustment Mechanism" – or CBAM for short – for selected sectors, scheduled for 2021 in the context of a re-newal of the Energy Tax Directive.

The introduction of a CBAM is particularly important for non-EU companies as well as EU-companies with operations outside the EU.

The background of the planned CBAM is as follows: goods produced outside the EU are most often subject to less stringent environmental standards. As a consequence, the threat of so-called "carbon leakage" arises – meaning the relocation of production facilities to countries outside the EU with less ambitious climate targets.

A CBAM is supposed to reflect the carbon content of the product by putting an additional price tag on imported goods. This means a cost increase related to CO2 and CO2-equivalent emissions primarily for products that are produced outside the EU but sold in the European market.

The most likely form of a CBAM is currently a tax. Such a carbon border tax is aimed at serving cli-mate protection and counteracting the aforementioned "carbon leakage". Furthermor, the tax offers trade policy protection for production sites in the EU – with possible implications under WTO rules.

For companies affected, the CBAM or carbon border tax is already now strategically relevant under the following aspects:

– Which sectors are covered by the carbon border tax?
– How is the amount of the carbon border tax calculated?
– What possibilities exist for relief or exemption from the carbon border tax?

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Mathias Mailänder

Mathias Mailänder provides advice on all environmental law issues. He specializes in climate protection law (emissions trading and the German Renewable Energy Act (EEG)), emission control law, water and waste law, energy tax law, environmental criminal law and environmental compliance. He also assists companies in the implementation of environmental and energy management systems (ISO 14001, EMAS and ISO 50001). Mathias Mailänder is a regularly published author, writing on current environmental law issues.

David Kaufmann

David Kaufman is the Director of Global Strategies at the international law firm Nixon Peabody LLP. In this role, he manages and helps develop strategy for the firm’s International Practice, international offices, and relationships with law firms around the world. David works extensively with clients outside the U.S. operating and investing in America and with American companies doing business around the world.  In 2019, David worked on transactions or other matters involving 137 countries and all 50 states. He is based in San Francisco and has an MBA from the University of Pennsylvania’s Wharton School of Business. 

June Lee

June Lee is a foreign attorney in the Environment, Health & Safety Practice as well as the Energy Practice at Kim & Chang. His practice mainly includes regulatory counseling and providing legal advice on transactional matters, with special focus on complex questions about the environmental & energy laws in Korea and the use of scientific information in law. In particular, he has advised numerous multinational energy corporations on complex regulations related to trading of GHG emission rights in Korea.

Robert Jan Jeekel

Robert Jan  Jeekel  is the Head of European Union Institutional Affairs for ArcelorMittal Europe. As such he is responsible for the priority policies for the company, such as all aspects of the ‘Fit For 55% package’, like the EU Emissions Trading Scheme Review, Renewables policy, Environmental & Energy State Aid rules, Decarbonisation financing, Sustainable Finance, Energy Taxation, Horizon Europe R&I framework, and Circular Economy rules.

In this context he has been dealing in detail with all aspects of the Carbon Border Adjustment Measure design along all stages of the EU Green Deal.

Robert has been Chairman of the Public Affairs Committee of the European Steel sector since 2012 and represents ArcelorMittal towards the European Union Institutions, as well as within associations like BusinessEurope and ERT.

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