EU’s CBAM to Reshape Global Supply Chains, Cut Emissions

Op-Ed: How Europe’s Carbon Rules Are Reshaping Global Trade – The Baron

The European Union’s Carbon Border Adjustment Mechanism has become one of the most significant recent changes in the relationship between climate policy and global trade. This is not only because of what it attempts to do environmentally, but because of how it redistributes economic and regulatory power across countries at very different stages of development. CBAM is designed to address carbon leakage, which occurs when companies shift producti…

EU’s CBAM to Reshape Global Supply Chains, Cut Emissions

The European Union’s pioneering adoption of carbon policies, spearheaded by the EU Emissions Trading System (ETS) in 2005, has been a significant step towards reducing emissions. The ETS sets a common price for carbon, targeting the most polluting manufacturing sectors and incentivizing firms to cut back on fossil fuel use. However, the policy’s impact has been somewhat diluted by firms increasing… Source

How Europe’s new carbon tax on imported goods will change global trade – and our shopping habits

For people living in the EU, the price of their next car, home renovation and even local produce may soon reflect a climate policy that many have never even heard of. This new regulation, which comes fully into force on New Year’s Day, does not just target heavy industry – it affects everyday goods which now face an added carbon cost when they enter Europe. The carbon border adjustment mechanism (CBAM) puts a carbon price on many imported goods …