Potential implications of the EU Carbon Border Adjustment Mechanism

Initiative Climate Change Policies and Governance
Type Commentary
Date 22 March 2022

Air conditioning
Applied general model
Article 6
Blockchain
Carbon
Carbon Accounting
carbon capture and storage
Carbon Capture and Storage (CCS)
Carbon market
Carbon Pricing
Circular carbon economy
Circular Carbon Economy (CCE)
Clean technology
Climate Action
Climate adaptation
Climate change
Climate Impacts
Climate mitigation
Climate Neutrality
Climate policy
CO2 emissions
Composite indicator
Cooling
COP
COP26
Covid-19
Decarbonization
Diversification
Economic value of carbon
Electricity
Emission Certification
Emissions
Enablers
Energy consumption
Energy Digitization
Energy diversification
Energy Economics
Energy efficiency
Energy Intensity
Energy prices
Energy productivity
Energy transition
Fuel switching
G20
GHGs
Green growth
Hydrogen
Index
Low Carbon Futures
Measurement Reporting and Verification (MRV)
Metrics
Mid-century Strategies
Nationally Determined Contribution
Natural sinks
Net-zero Emission Scenarios
Nuclear energy
Paris Agreement
Renewable energy
Saudi Arabia
Sustainability
Sustainable development goals
Temperature
UNFCCC
Value Chain Emissions

Abstract

From 2023 onward, the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) will require importers to declare the embedded carbon emissions of electricity, iron, steel, aluminum, cement and fertilizers. The CBAM will ultimately transition into a carbon import tax, with the goal of resolving carbon leakages in the EU’s emission trading system (ETS).

Authors

Bertrand Rioux

Bertrand is a research fellow focusing on the impact of market regulation and liberalization in energy markets. An experienced energy systems… Bertrand is a research fellow focusing on the impact of market regulation and liberalization in energy markets. An experienced energy systems model developer (linear optimization and mixed complementary problems), he is working on developing the KAPSARC Energy Model (KEM) as a decision support tool for analyzing price regulation in energy economies. Bertrand has contributed to the development of KEM Saudi Arabia and is the lead developer of KEM China, studying the impact of government regulation in the coal, power and natural gas markets. He was previously employed as a research assistant at the Canadian Space Agency.

Dongmei Chen

Research Fellow Dongmei is a Research Fellow at KAPSARC with a focus on energy trade, energy investment and regional energy cooperation. She… Dongmei is a Research Fellow at KAPSARC with a focus on energy trade, energy investment and regional energy cooperation. She has more than 20 years of experience in China’s energy and climate change policy development. Before joining KAPSARC, she worked at the Institute for Industrial Productivity (IIP) as a senior advisor and head of the China office, developing and disseminating best practices to improve industrial energy productivity. Before working at IIP, she worked at WWF China as director of the Climate Change and Energy Program, leading the design and implementation of the Low Carbon City Initiative in partnership with local Chinese governments and international networks. Before working at the WWF, she worked at China’s Ministry of Science and Technology, the Ministry of Water Conservation, and the Xinjiang Wind Energy Company.

Expertise