Avoiding the Pitfalls of an EU Carbon Border Adjustment Mechanism

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Publication Date July 2021
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The EU wants to introduce a carbon border adjustment mechanism (CBAM) to ensure its climate change mitigation measures are effective and do not lead to so-called carbon leakage. Imports would be subject to a carbon-related fee, reflecting the costs that the EU imposes on domestic producers under its emissions trading system (ETS). While the proposal might still change ahead of publication, a leak of the European Commission’s draft CBAM regulation and annexes provides fresh insight into the EU’s approach. It also raises a number of questions on the impact on small and medium sized importers, developing countries, the allocation of free allowances and the UK

Source Link https://www.cer.eu/insights/avoiding-pitfalls-eu-carbon-border-adjustment-mechanism
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  • https://www.cer.eu/sites/default/files/insight_CBAM_EC_SL_5.7.21.pdf
Related Links
European Commission: 2021: Proposal for a Regulation of the European Parliament and of the Council on the Establishment of a Carbon Border Adjustment Mechanism ('CBAM') https://www.euractiv.com/wp-content/uploads/sites/2/2021/06/CBAM-Regulation-Draft.pdf

ESO Records
CER Policy Brief: April 2020: The EU’s Carbon Border Adjustment Mechanism: How to Make it Work for Developing Countries https://www.europeansources.info/record/the-eus-carbon-border-adjustment-mechanism-how-to-make-it-work-for-developing-countries/
Jacques Delors Institute Policy Paper: June 2020: Greening EU Trade 3 – A European Border Carbon Adjustment Proposal https://www.europeansources.info/record/greening-eu-trade-3-a-european-border-carbon-adjustment-proposal/

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