The EU approves a key exception to the carbon tax to protect industry in the Canary Islands and outermost regions

European Regulation

The European Parliament's Committee on International Trade has approved a key exception to the carbon emissions trading scheme (CBAM) for the outermost regions. The measure, supported by MEP Gabriel Mato, aims to protect local industry in territories such as the Canary Islands from additional costs associated with importing raw materials.

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La International Trade Commission (INTA) of the European Parliament has taken a decisive step this June 24th in Brussels by approving three amendments that introduce a specific exception for the outermost regions (ORs) in the framework of Carbon Border Adjustment Mechanism (CBAM), commonly known as the European carbon taxThis measure is designed to safeguard the competitiveness of local industries in territories such as Canary Islands, Madeira, Azores and the French outermost regions.

The approval represents the culmination of a "historic demand," according to the Canary Islands MEP. Party, Gabriel Mato, member of the commission INTA"Ultimately, the goal is to avoid generating additional costs for our local industries that depend on imported raw materials and that, due to their geographical and economic characteristics, do not present any significant risk of carbon leakage to third countries," he stated. Mato.

Shielding local industry from 'carbon leakage'

El CBAM It is a regulatory tool of the European Union which imposes a tax on certain products imported from outside the European Union. Its main objective is to combat what is known as "carbon leak"This phenomenon occurs when companies relocate their production to countries with less stringent climate policies to reduce costs, creating unfair competition for European companies that do invest in sustainability.

In this context, Gabriel Mato He explained the logic of the general regulations: "What the European Union It is that imported products compete on the same terms as those produced within EuropeHowever, he stressed that a uniform application of the mechanism would penalize the outermost regions. "The outermost regions have special needs, and many industries require importing raw materials to produce locally. Therefore, an identical application of this surcharge would generate additional costs that hinder their activity," the MEP pointed out.

Conditions and next steps for the CBAM exception

The exemption approved in committee is not a blank check. It will apply under specific conditions to a range of goods covered by the mechanism. The key to the amendment is that these products will be exempt from the duty when imported into an outermost region for local processing. Furthermore, the final product must be destined for consumption within that same region or in other outermost regions.

With the favorable vote of INTAThe report will now go to the Plenary Session of European Parliament for its final vote. This progress is considered a milestone in consolidating a regulatory adaptation that addresses the economic and geographical particularities of Canary Islands and the rest of the outermost regions. It should be noted that, during the negotiations, both the European Commission such as Council of the European Union They had already recognized the need to establish an exception of this nature for the outermost territories.

Key aspects of the CBAM exception for the outermost regions

Concept	Description
Objective	Avoiding additional costs for local industries in the outermost regions that depend on imported raw materials.
Territories Benefited	Canary Islands, Madeira, Azores and the French outermost regions.
Application Conditions	The exemption applies to imported raw materials to be processed and consumed locally or in other RUPs.
Regulatory Mechanism	Amendments to the Carbon Border Adjustment Mechanism (CBAM).
Actual state	Approved in the International Trade Committee (INTA), pending vote in the Plenary of the European Parliament.

Key points and frequently asked questions about the CBAM exception for the RUP

How does this CBAM exception affect Spanish exporting companies?

For companies based in the Peninsula, CBAM It will be applied as normal, ensuring that their products compete on a level playing field with imports from third countries. For companies in Canary Islands For other outermost regions (ORs), this exception is vital, as it allows them to import raw materials without the added cost of the carbon tax, maintaining their competitiveness in local and inter-island markets without being penalized for their external dependence and geographical remoteness.

What exactly is the 'carbon leakage' that CBAM aims to prevent?

"Carbon leakage" is the risk that, in order to avoid the costs of climate policies, countries will leave their carbon footprints. European UnionCompanies are moving their production to countries with less stringent environmental regulations. This not only undermines climate efforts UEbut it also creates a competitive disadvantage for European companies that do comply with the standards and bear the costs of the ecological transition.

Is the exemption permanent and does it apply to all products imported into the Canary Islands?

The exemption is not yet final; it still needs to be approved by the committee. INTA, must be ratified by the Plenary of European ParliamentFurthermore, it does not apply indiscriminately to all products. It is limited to certain goods covered by the CBAM that are imported with the specific purpose of being transformed in the region and consumed there or in another outermost region, thus preventing these territories from becoming a gateway for products that evade the tariff to access the European single market.