CBAM launch triggers CO2 pricing worldwi • Table.Briefings

The European Carbon Border Adjustment Mechanism (CBAM) will be launched on Oct. 1., although no CO2 duties will be levied on affected imports during the two-year test phase. Nevertheless, the climate action instrument is already triggering reactions worldwide. Above all, it appears to be fulfilling one of its key purposes: CBAM provides incentives for CO2 pricing abroad.

According to EU Commission President Ursula von der Leyen, only 23 percent of global greenhouse gas emissions are currently subject to a CO2 price, which would bring in $95 billion in revenue, she said last week at the UN climate summit in New York – and added to the sum with a thought experiment: imagine the revenue that would be generated for investments in low- and middle-income countries if the 60 percent of global greenhouse gas emissions targeted by UN Secretary-General António Guterres could be covered by 2030.

CBAM launch triggers CO2 pricing worldwide

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