Simon Coveney (Cork South Central, Fine Gael)
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I have not engaged on this particular topic with EU counterparts, as engagement on the EU's budget, and any revenue generated from mechanisms such as the carbon border adjustment mechanism (CBAM) are primarily a matter for the Minister for Finance.

The CBAM is one of the key measures under the European Green Deal. It places a carbon price on imports of certain goods from outside the EU, in order to push EU partners to raise their climate ambition and reduce the risk of 'carbon leakage'; where companies transfer production abroad to countries that have less stringent emission rules in place. Carbon leakage would counteract Europe's efforts to become climate-neutral by 2050, relocating emissions to third countries rather than reducing global emissions.

CBAM will initially apply to imports of cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen and selected precursors whose production is carbon intensive and at most significant risk of carbon leakage. A transitional phase has been in place from 1st October 2023 during which a simplified CBAM applies, essentially with reporting obligations only and a focus on data collection. A permanent system will enter into force on 1st January 2026. From here on importers will need to declare on an annual basis, the quantity of goods imported into the EU in the preceding year and their embedded GHG. Member States including Ireland will be responsible for correctly establishing and collecting revenues arising from CBAM.

As the CBAM aims to encourage cleaner production, the EU is committed to working with and supporting low and middle-income third countries towards the decarbonisation of their manufacturing industries as part of the external dimension of the European Green Deal and in line with the Paris Agreement.

The CBAM Regulation states that the EU should also continue to support climate mitigation and adaptation in those countries, including in their efforts towards the decarbonisation and transformation of their manufacturing industries, within the ceiling of the multi-annual financial framework and the financial support provided by the Union to international climate finance.