Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism

Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2023/956 as regards simplifying and strengthening the carbon border adjustment mechanism       The European Union has set itself the legal objective of becoming a climate-neutral and climate resilient continent by 2050 as enshrined in Regulation (EU) 2021/1119 on the [European Climate Law1.] These binding goals were specified in the Communications on the European Green Deal2 and on A Strong Social Europe for Just Transitions3, in which the Commission set the ambition to upgrade Europe’s social market economy to achieve a just transition to sustainability. In his report on ‘The Future of European Competitiveness’, Mario Draghi emphasised the need for Europe to create a regulatory landscape which facilitates competitiveness and resilience.4 In the Budapest Declaration on the New European Competitiveness Deal, EU Heads of State and Government called for ‘a simplification revolution, ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for [SMEs’.5 Multiple companies and stakeholders have voiced their concerns about the administrative burden resulting from a number of EU acts, including Regulation] (EU) 2023/956 establishing a Carbon Border Adjustment Mechanism (‘CBAM Regulation’)6. In its Communication on the Competitive Compass for the EU, the Commission confirmed that it would deliver an unprecedented simplification effort to achieve the agreed policy objectives in the simplest, most targeted, most effective and least burdensome way. In its Communication entitled ‘A simpler and faster Europe: Communication on implementation and simplification’, the Commission set out an implementation and simplification agenda that delivers fast and visible improvements for people and business on the ground, requiring more than an incremental approach and underlining the need for bold action to streamline and simplify EU, national and regional rules.