
The CBAM and amendments to the ETS have been enacted but not in terms of becomingown resources for the EU, as there have already been two sets of proposed amendments to the2020 Own Resources Decision so far, neither of which have resulted in legislativeamendments. Assessing the capacity of either measure to produce sufficient revenue to repaythe NextGenerationEU debt is difficult because of multiple issues, which this chapter dividesinto three categories. First, there is the uncertainty generated by the EU’s conflictingobjectives. Both measures depend on carbon usage in order to generate revenue, andsignificant continued carbon usage if they are to generate enough revenue to repay the debt.However, both measures are fundamental to the EU’s green policy objectives. Second, thepotential revenue either measure could raise is based on estimated figures. Third, it is unclearwhether the revenue raised will be enough to repay the full cost of borrowing in the form ofboth principal and interest. This chapter questions whether the EU has the ability to repay theNextGenerationEU debt with these measures, or whether has it otherwise so far developedonly debt capacity.
Carbon Border Adjustment Mechanism CBAM, Emissions Trading Scheme ETS, NextGenerationEU, EU own resources, Carbon Border Adjustment Mechanism, CBAM, debt, Own Resources Decision
Carbon Border Adjustment Mechanism CBAM, Emissions Trading Scheme ETS, NextGenerationEU, EU own resources, Carbon Border Adjustment Mechanism, CBAM, debt, Own Resources Decision
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