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Carbon Border Adjustment.pdf

Working_Paper_MACF_EN.pdf
Preview of Carbon Border Adjustment
🔗 Source: la-fabrique.fr
📊 Size: 494 KB
📄 Pages: 29 pages
⬇️ Downloads: 188

Summary

The European Union's commitment to carbon neutrality by 2050 may lead to an increase in carbon prices, putting energy-intensive industries at risk of carbon leakage. The European Commission proposes a Carbon Border Adjustment Mechanism (CBAM) to address this issue, with four possible scenarios: a tax on imported products' carbon content, extending the EU ETS to imports, creating a new system of allowances for imports, or establishing a carbon tax at the consumption level. Each scenario raises different issues regarding legal feasibility and administrative applicability. Industry representatives agree on the need to address carbon leakage but have different views on how to achieve it, questioning the efficiency of a CBAM and expressing concerns over losing free allocations and potential commercial retaliation. The introduction of a CBAM is perceived as destabilizing for businesses, and its achievability depends on environmental benefits, competitiveness, and political and diplomatic feasibility.

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Description

The European Union's commitment to carbon neutrality by 2050 may lead to an increase in carbon prices, putting energy-intensive industries at risk of carbon...

Technical Information

  • File Format: PDF
  • File Size: 494 KB
  • Pages: 29
  • Language: EN
  • Total Downloads: 188
  • Last Updated: 4 weeks ago

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