European Commission to unveil competitiveness compass amid global carbon market discussions
This week, the European Commission will reveal its strategic 'competitiveness compass', while discussions at the World Economic Forum highlight the need for a unified global carbon market.
The European Commission is set to unveil its 'competitiveness compass' this week, which is described by Commission President Ursula von der Leyen as the “North Star” guiding EU policymaking over the next five years. This strategic document will detail a coordinated roadmap for both decarbonisation and competitiveness within the European Union.
Meanwhile, discussions at the World Economic Forum (WEF) in Davos have highlighted the pivotal role of a unified global carbon market in achieving climate targets, under Article 6 of the Paris Agreement. Experts underscored the necessity of establishing clear governance and regulations to foster trust and stimulate investment within this market framework.
In addition, significant developments are taking place in carbon removal technology. A developer of direct air capture (DAC) technology recently entered into a partnership with Shell US Gas and Power and the American subsidiary of Mitsubishi Corporation. This agreement marks a critical step towards establishing the Pelican – Gulf Coast Carbon Removal DAC Hub in Louisiana, positioning the hub as a key player in the carbon removal landscape.
In a related context, the European steel industry is advocating for timely adjustments to the EU’s carbon border levy. Eurofer, the steel industry lobby group, communicated its urgency for the mechanism’s implementation to prevent carbon leakage that could undermine the EU’s decarbonisation efforts. The group is recommending various changes, including a structural solution to safeguard European exports, stricter regulations against circumvention practices like resource shuffling, and an extension of the levy’s application to steel-intensive downstream sectors.
These developments reflect a growing emphasis on carbon removal strategies and frameworks within global governance, highlighting collaborative efforts and regulatory measures aimed at addressing climate change challenges while enhancing economic competitiveness.
Source: Noah Wire Services