L130/52EN16.5.2023REGULATION(EU)2023/956 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCILof 10 May 2023establishing a carbon border adjustment mechanism(Text with EEA relevance)THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION.Having regard to the Treaty on the Functioning of the European Union,and in particular Article 192(1)thereof,Having regard to the proposal from the European Commission,After transmission of the draft legislative act to the national parliaments,Having regard to the opinion of the European Economic and Social Committee().Having regard to the opinion of the Committee of the Regions(),Acting in accordance with the ordinary legislative procedure ()Whereas:(1)In its communication of 11 December 2019 entitled The European Green Deal'(the 'European Green Deal),theCommission set out a new growth strategy.That strategy aims to transform the Union into a fair and prosperoussociety,with a modern,resource-efficient and competitive economy,where there are no net emissions (emissionsafter deduction of removals)of greenhouse gases (greenhouse gas emissions)at the latest by 2050 and whereeconomic growth is decoupled from the use of resources.The European Green Deal aims to protect,conserve andenhance the Union's natural capital,and to protect the health and well-being of citizens from environment-relatedrisks and impacts.At the same time,that transformation must be just and inclusive,leaving no one behind.TheCommission also announced in its communication of 12 May 2021 entitled Pathway to a Healthy Planet for All,EU Action Plan:Towards Zero Pollution for Air,Water and Soil'the promotion of relevant instruments andincentives to better implement the 'polluter pays'principle set out in Article 191(2)of the Treaty on theFunctioning of the European Union (TFEU)and thus complete the phasing out of pollution for free'with a view tomaximising synergies between decarbonisation and the zero-pollution ambition.The Paris Agreement(),adopted on 12 December 2015 under the United Nations Framework Convention onClimate Change(UNFCCC)(the 'Paris Agreement),entered into force on 4 November 2016.The Parties to the ParisAgreement have agreed to hold the increase in the global average temperature well below 2 C above pre-industriallevels and to pursue efforts to limit the temperature increase to 1,5 C above pre-industrial levels.Under theGlasgow Climate Pact,adopted on 13 November 2021,the Conference of the Parties to the UNFCCC,serving as themeeting of the Parties to the Paris Agreement,also recognised that limiting the increase in the global averagetemperature to 1,5C above pre-industrial levels would significantly reduce the risks and impacts of climate change,and committed to strengthening the 2030 targets by the end of 2022 to close the ambition gap.90C152,6.4.2022,p.181.0C301,5.8.2022,p.116.()Position of the European Parliament of 18 April 2023 (not yet published in the Official Journal)and decision of the Council of25 April 2023.(0L282,19.10.2016,p.4.16.5.2023ENL130/53(3)Tackling climate and other environment-related challenges and reaching the objectives of the Paris Agreement are atthe core of the European Green Deal.The value of the European Green Deal has only grown in light of the verysevere effects of the COVID-19 pandemic on the health and economic well-being of the Union's citizens.(4)The Union committed to reducing the Union's economy-wide net greenhouse gas emissions by at least 55%compared to 1990 levels by 2030,as set out in the submission to the UNFCCC on behalf of the European Unionand its Member States on the update of the nationally determined contribution of the European Union and itsMember States.(5)Regulation (EU)2021/1119 of the European Parliament and of the Council (has enshrined in legislation theobjective of economy-wide climate neutrality at the latest by 2050.That Regulation also establishes a bindingUnion domestic reduction target for net greenhouse gas emissions (emissions after deduction of removals)of atleast 55%compared to 1990 levels by 2030.(6The Special Report of the Intergovernmental Panel on Climate Change (IPCC)of 2018 on the impacts of globaltemperature increases of 1,5C above pre-industrial levels and related global greenhouse gas emission pathwaysprovides a strong scientific basis for tackling climate change and illustrates the need to step up climate action.Thatreport confirms that,in order to reduce the likelihood of extreme weather events,greenhouse gas emissions need tobe urgently reduced,and that climate change needs to be limited to a global temperature increase of 1,5 C.Moreover,if mitigation pathways,consistent with limiting global warming to 1,5C above pre-industrial levels,arenot rapidly activated,much more expensive and complex adaptation measures will have to be taken to avoid theimpacts ofhigher levels of global warming.The contribution of Working Group I to the Sixth Assessment Report ofthe IPCC entitled'Climate Change 2021:The Physical Science Basis'recalls that climate change is already affectingevery region on Earth and projects that in the coming decades climate change will increase in all regions.Thatreport stresses that,unless there are immediate,rapid and large-scale reductions in greenhouse gas emissions,(7)The Union has been pursuing an ambitious policy on climate action and has put in place a regulatory framework toachieve its 2030 target for greenhouse gas emissions reduction.The legislation implementing that target consists,inter alia,of Directive 2003/87/EC of the European Parliament and of the Council(),which establishes a system forgreenhouse gas emission allowance trading within the Union ('EU ETS)and delivers harmonised pricing ofgreenhouse gas emissions at Union level for energy-intensive sectors and subsectors,of Regulation(EU)2018/842of the European Parliament and of the Council(),which introduces national targets for the reduction ofgreenhouse gas emissions by 2030,and of Regulation (EU)2018/841 of the European Parliament and of theCouncil ()which requires Member States to compensate greenhouse gas emissions from land use with the removalof greenhouse gases from the atmosphere.(8)While the Union has substantially reduced its domestic greenhouse gas emissions,the greenhouse gas emissionsembedded in imports to the Union have been increasing,thereby undermining the Union's efforts to reduce itsglobal greenhouse gas emissions footprint.The Union has a responsibility to continue playing a leading role inglobal climate action.(Regulation (EU)2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achievingclimate neutrality and amending Regulations (EO No 401/2009 and (EU)2018/1999 (European Climate Law)(OJ L 243,9.7.2021,()Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gasemission allowance trading within the Union and amending Council Directive 96/61/EC(OJ L 275,2 5.10.2003,p.32).(Regulation (EU)2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emissionreductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement andamending Regulation (EU)No 525/2013 (O]L 156,19.6.2018,p.26).Regulation (EU)2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gasemissions and removals from land use,land use change and forestry in the 2030 dimate and energy framework,and amendingRegulation (EU)No 525/2013 and Decision No 529/2013/EU (O]L 156,19.6.2018,p.1).