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As the Carbon Border Adjustment Mechanism (CBAM) enters its implementation phase, it’s essential to think of strategies to make the measure inclusive and avoid exacerbating inequalities with the Global South.
This seminar will focus on the impact of this policy on the trade relations between the EU and the global South, and discuss its implications in the big scheme of the fight against climate change. The apparent trade-off between penalising industrial carbon emissions and punishing those countries most vulnerable to the effects of climate change will be explored through two thematic panels.
The idea of a CBAM has taken up a significant amount of breath and political discourse in international policy circles and decision-making fora since 2008. Recently, this has been heightened by the “Fit for 55” policy package by the European Commission as part of the European Green Deal. The use of CBAM as a tool to price carbon emissions into goods imported to the EU from non-EU countries is intended to counteract ‘carbon leakage’, i.e. the risk of carbon-intensive industries relocating to countries with less strict climate policies and regulations.
However,this recently approved trade instrument suffers from several drawbacks that might impede its successful implementation and create market distortions; notably its limited emission scope, limited sectoral scope, and the risk of creating tension with some trading partners.
If you are interested and would like more information, please contact Luis Sáez Jiménez, Project Officer, at email@example.com
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