The European Commission is considering a mass exemption of tens of thousands of businesses from the carbon border tax in a silent but crucial step back in the green transition process.
The plan being prepared by the European Commission exempts over 80% of businesses currently subject to the tax's performance criteria from the new regulatory framework. In practice, this means that up to 180,000 businesses will be exempted from the total of 200,000 that, based on the data so far, would be required to pay the carbon border tax.
The "green" path
The Commission's main argument is that only 20% of these 200,000 companies are responsible for almost all of the gas emissions, but analysts link Brussels' move to Trump's pro-fossil fuel agenda and the overall rethinking of the path towards green energy.
Taxation Commissioner Wopke Hoekstra told the Financial Times that the Commission’s aim is to limit the Carbon Cross-Border Adjustment Mechanism (CBAM) to the largest importers and exempt more businesses from compliance costs and fees.
“Less than 20% of companies are responsible for 97% of gas emissions,” said Hoekstra, emphasizing: “The importance of climate goals is in no way being downplayed.
But it is a way to make life much easier for a wide range of companies across the continent."
The new adjustment mechanism had caused strong protests from European businesses during its trial operation, mainly due to the complicated bureaucratic procedures it involves.
source: naftemporiki.gr
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