During our class session on 31 May, we will be holding a two-stage simulation on trade and climate change to gain a better appreciation of policy making in the European Union.
In both settings, the starting point is the agreement on 15 March 2022 by the Council of the European Union on the carbon border adjustment mechanism (CBAM) (https://www.consilium.europa.eu/en/press/press-releases/2022/03/15/carbon-border-adjustment-mechanism-cbam-council-agrees-its-negotiating-mandate/#:~:text=CBAM%20is%20designed%20to%20function,allowances%20of%20EU%20ETS%20allowances. (Links to an external site.))
The discussions we will be having will be on next steps.
We will first convene in an informal exchange of views (chaired by Professor Shoyer) among European stakeholders about appropriate next steps and timing now that the Council has agreed to move forward on the CBAM. You will note that industry associations for all five (cement, aluminium, fertilsers, electric energy production, iron and steel) of the sectors covered by the CBAM are represented, but so too are industry associations from sectors not directly targeted by the CBAM but that might be negatively (or positively?) impacted, as well as other Ã¢â‚¬Å“civil societyÃ¢â‚¬Â voices, and representatives of the European Commission and the European Parliament.
You will see your assignments below. Please take about an hour to prepare for the discussion. First, take a look at your organizationÃ¢â‚¬â„¢s website. If your organization has posted position papers or similar materials on the CBAM and/or aspects of the Fit for 55 program, you should feel free to base your comments at the meeting on those materials. If not, look at other materials on the organizationÃ¢â‚¬â„¢s website, think carefully about how you think the organization would position itself on the issues, and develop your comments accordingly.
You will be invited by the chair to make short opening remarks on two questions and then to engage in free-flowing debate:
Which is more important and why – avoiding carbon leakage or encouraging the EUÃ¢â‚¬â„¢s trading partners to establish carbon pricing policies to fight climate change?
Now that the EU will establish a CBAM to address carbon leakage, should it be proactive to pursue its goals in a multilateral forum (e.g., UNFCCC, WTO) or reactive (e.g., wait until a WTO Member challenges the CBAM in dispute settlement)? [NOTE: Your views on this question are likely to be affected by your views on the extent to which the CBAM is Ã¢â‚¬Å“in full compliance with international trade rules,Ã¢â‚¬Â as the CouncilÃ¢â‚¬â„¢s press release asserts.]
Anwar Al-Dosari CEMBUREAU – European Cement Association
My part will be on:
Europan Trade Union Confederation
We will then reconvene as the Council of the European Union to consider a short decision text (see attached). To be clear, your roles in Stage One are completely unconnected to your roles in Stage Two. In Stage Two, you will be speaking on behalf of an EU Member State and your views can be wholly different from the views you espoused during State One.
You will see your assignments below. Please take about 30 minutes to prepare for the discussion. You are welcome to research your assigned Member StateÃ¢â‚¬â„¢s positions online regarding trade and climate change, but even more importantly, rather than relying on what Member State governments have asserted in writing, think carefully about that country. Is it large or small, relatively industrial or agrarian, trade-exposed or relatively insular? How will climate change impact it? Use those insights as the basis of your participation in the simulation. You will not need to prepare or present opening remarks. This exercise will test your creativity in reacting to text and making progress in negotiations, so you will see the text on screen in the classroom and proceed from there.
I will be speaking in behalf of Czech Republic
I want a clear paper that show the point on stage 1 and Stacie 2 covering the questions as a speaker I will be reading the paper in class
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