✅ The coalition calls for:

• A halt to ICC expansion until reformed
• Updated CO₂ factors based on real marginal emissions in each bidding zone

📩 ETS revenues must fund real decarbonisation, not fossil subsidies.
👇 Read the letter:
sandbag.be/2025/11/13/i...

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⚠️ What’s wrong with the proposal?

• Subsidies to sectors with low carbon leakage risk
• Compensation based on fossil fuel averages, not real-time grid mix
• ❌ No obligation to invest in clean tech or cut fossil energy use

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💶 In 2023, nearly €4bn in ETS revenues were spent on ICC — 16.4%+ of the total.

Now, the Commission plans to double the number of eligible sectors and keep using outdated fossil CO₂ factors — risking further diversion of funds away from climate action.

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👇 Read it here:
sandbag.be/2025/11/12/s...

👇Read it on European Commission portal: ec.europa.eu/info/law/bet...

#RecycledContent #Decarbonisation #CleanSteel

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• Scrap classification and certification
• Minimum recycled content requirements for all steel on the EU market, including imports

❗The Act can address systemic fragmentation and support low-carbon steel production by aligning policy incentives with circular material use.

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Sandbag’s submission focuses on the carbon-intensive flat steel sector, where scrap remains underused despite its decarbonisation potential.

📌 Recommendations include:

• Design-for-recyclability obligations
• Avoid downcycling/export of high-grade scrap
• Improve traceability tools

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✅ To deliver real climate benefits, electrification must be strategic and flexible — with new renewables added on top of what’s already needed to decarbonise power grids.

❌ Otherwise, the EU risks locking in fossil-fuel output for years

👇Read our report
sandbag.be/2025/06/12/g...

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Sandbag’s Getting Electrification Right warns:

If electricity demand rises faster than renewable supply, fossil generation fills the gap.

❗Industrial electrification without flexibility risks induced emissions — more fossil, not less.

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✅ CBAM can work for Africa — it supports a shift to cleaner production

🏭 Lower emissions = fewer costs
📦 Competitive exports
💡 Long-term industrial advantage

👇 Read Sandbag’s chapter (pp. 59–60):

sandbag.be/wp-content/u...

#CBAM #CarbonMarkets #Africa

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📊 Net CBAM costs for Africa could fall to €670M — even without cleaner production — thanks to higher EU selling prices. 🌍

A 50% carbon price of the EU price in Africa could flip this into a €134M net gain.

📈 Aluminium = gain
⚠️ Steel & fertilisers = net costs

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This would:

✔️ Incentivise clean electricity
✔️ Prevent windfall profits
✔️ Cut costs for Member States
✔️ Align with a CBAM extension to indirect emissions

📄 Read our full response:

🔗 sandbag.be/2025/08/21/s...

#CBAM #CarbonMarkets

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Sandbag recommends clear reforms:

✅ Only compensate the non-fossil share of electricity consumed
✅ Limit support to periods when fossil fuels set the marginal price

This aligns incentives and avoids wasteful spending.

#StateAid #NetZero

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ICC was meant to protect industry from carbon leakage. But in its current form, it:

• Compensates all electricity use, incl. fossil
• Discourages clean power
• Grows with electrification
• Clashes with plans to extend CBAM to indirect emissions

❗The simulator is designed to support evidence-based decisions on decarbonisation and climate policy.

#CBAM #CarbonPricing #ClimatePolicy

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🔍 Built with transparent, user-controlled assumptions, the simulator lets users model scenarios & policy choices, and assess:

• 💰 Net CBAM cost = fees paid – revenue gains from EU sales
• ⛔ Effects as free allocation phases out in Europe’s carbon market

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The tool enables users to:

• 📈 Estimate CBAM-related costs by country, sector & product
• 🧾 Explore policy responses incl. domestic carbon pricing and resource reallocation
• 🔄 Simulate scope extensions: indirect emissions, new sectors, upstream/downstream products

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Beyond costs, CBAM is also an opportunity.

Cleaner production could make African industries more competitive in a decarbonising global market.

📅 Simulations launch 16 Oct with Sandbag’s CBAM Simulator

👉 Blog: sandbag.be/2025/10/14/c...

#CBAM #Africa #ClimatePolicy

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