Making the Carbon Border Adjustment Mechanism work for reuse
Reuse is not relevant for the majority goods covered by the Carbon Border Adjustment Mechanism. This is because many intermediate goods - such as cement, fertiliser, electricity or hydrogen - cannot be reused. However, iron, steel, and aluminium are different, which might end up being reused in construction or infrastructure works.
The trade of reused goods is still in its early days, but ECOS believes that it is important to fix reuse blockages in the CBAM. Doing so would support the EU’s ambitions to transition to and be a global leader in circular economy. This position paper puts forward two potential solutions: expanding the Combined Nomenclature (CN) codes or introducing rules on reuse in the CBAM acquis.
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