”In its fight against global warming, the European Union is about to take an important step: the launch of the operational phase of its Carbon Border Adjustment Mechanism (CBAM). How will it work? Who will be affected? What will be the economic consequences? These questions (and a few others) are addressed below. In a month’s time, the 30th Conference of the Parties (COP) on climate change will be held in Belém, Brazil. With global warming accelerating (the +1.5°C warning threshold compared to the pre-industrial era is set to be exceeded with certainty), the conference will review the ”nationally determined contributions” (NDCs) to reduce emissions by 2035, with a higher level of ambition. However, to date, the EU has still not revealed its intentions (unlike Canada, Brazil, Japan and the United Kingdom, among others), even though achieving the ”fit for 55” target (at least 55% reduction in GHG emissions by 2030 compared to 1990) requires greater efforts[1] . It is in this context that the EU-27 are strengthening their measures by introducing a carbon border tax.”
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Morten W. Langer
