Border Carbon Adjustments in the EU: Issues and Options
ERCST, Roundtable on Climate Change and Sustainable Transition, 2020
70 Pages Posted: 19 Nov 2020
Date Written: October 1, 2020
As part of the European Green Deal (EGD), the European Commission is currently elaborating a legislative proposal for a Carbon Border Adjustment Mechanism (CBAM) to prevent greenhouse gas emissions leakage and level the playing field between European and foreign emitters. This report brings together the main takeaways from the project ‘Border Carbon Adjustments (BCAs) in the EU: Issues and Options’ launched in November 2019 to provide analytical input and foster an informed debate with domestic and international stakeholders as the CBAM file progresses through the early stages of the legislative process.
Drawing on extensive feedback obtained in a series of stakeholder consultations, the report offers a detailed analysis of the building blocks of BCAs as a policy option in the European context, discusses alternative policy options, and considers different combinations of policy instruments to achieve the desired outcomes.
Keywords: Border Carbon Adjustment, ETS, CBAM, BCA, Climate, Competitiveness, Leakage
JEL Classification: Q50, Q54, F13, F18, F64
Suggested Citation: Suggested Citation