July 16, 2021 (LONDON): The European Commission said boosting the strictness of the region’s climate policy could take place later if legislation isn’t agreed and implemented by 2024, according to Hans Bergman, head of the unit, DG Clima, European Commission, speaking at an Argus carbon markets and regulation conference.

Bergman was asked about the timeline before the proposals presented on July 14 would be implemented. This is what he said (Warning: I didn’t find it really clear — I’m trying to make it slightly clearer here):

“I don’t really know but we have put here and there … the proposal of starting different elements 24 (2024) etc but that’s of course if the legislation is in place by then…for example the rebasing — it can be done differently if it (the implementation) starts later. And also on this new ETS, you know this proposed to start in 26 (2026) … so there are certain years we’re assuming that there would be adoption at certain time and giving also some time for implementation.”

An introductory period for a planned carbon border adjustment mechanism (CBAM) begins 2023.

🇪🇺 News story: The @EU_Commission has set out proposals to almost double the #EUETS annual supply cap reduction, maintain a higher intake rate for the market's stability reserve, and set up a separate trading system https://t.co/Temc49UG7e | #ArgusEmissions #climatechange pic.twitter.com/9pYd2l84h7

— Argus Media (@ArgusMedia) July 16, 2021

Modifying the supply-managing MSR of the #EUETS to maintain its current ambition level will be a separate "quicker" process to the legislation of the European Commission’s larger #Fitfor55 climate package, a senior EU official said Friday.https://t.co/w8JM9gH0fL#OCTT

— Mike Szabo (@MikeSzaboCP) July 16, 2021

On the CBAM, Bergman said it was important that nations around the world were seeking to make sure they didn’t face restrictions on their exports to the EU and that they were examining what climate policies they might put in place to avoid those restrictions. This has meant the CBAM plan, which would see some importers into the EU face a carbon price, is already having a global impact.

The EU won’t tolerate free riders on its climate policy, he said.

“In the EU we do a lot, and some don’t do anything and think that they can just profit from that.”

Bergman signaled the post-Brexit relationship between the EU and the U.K. may not be good enough for an immediate linking of their two carbon markets.

“One thing is to link and then the other thing is that once you link it’s like marriage, you have to keep together.”

(Adds Argus Tweet; updates with comments)

Link for some context: http://carrzee.org/2021/07/14/eu-carbon-price-whipsaws-as-timmermans-says-climate-success-requires-statecraft/

And here: http://carrzee.org/2021/07/14/smaller-surplus-to-trigger-supply-reduction-in-eu-carbon-market/