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CBAM and trade competitiveness: can they coexist?
The European Commission has proposed implementing a Carbon Border Adjustment Mechanism (CBAM) to combat carbon leakage and phase out the EU Emissions Trading System’s free allowance. In its current form, the CBAM challenges not only European export competitiveness in markets that have lower or no carbon prices but also the EU’s ability to stem carbon leakage. However, with an adjustment for exports, the EU can not only keep the playing field even for businesses but also protect our planet. Read AmCham EU’s perspectives on how to improve the CBAM and learn more about its impact on international trade.