The EU’s Carbon Border Adjustment Mechanism: How to Make it Work for Developing Countries

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Publication Date April 2020
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The EU’s proposed carbon border adjustment mechanism (CBAM) risks unfairly penalising the exports of developing countries. If the mechanism applied to the imports of all goods currently covered by the EU’s Emissions Trading System, up to $16 billion of developing country exports to the EU could face an additional charge. The EU already uses the WTO’s so-called enabling clause to grant some developing countries preferential access to its market unilaterally. The EU should fully or partially exempt those countries’ exports from its CBAM on a similar basis

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