CBAM: Experts call for reforming CO2 bor • Table.Briefings

The carbon border adjustment tax is intended to protect industry in the EU from non-European competitors with lower climate standards.

According to economists, the European Carbon Border Adjustment Mechanism (CBAM) has numerous shortcomings and should be replaced by a climate club. Climate action contracts also have disadvantages, according to experts from the Ifo Institute.

In the study „Watts Next: Securing Europe’s Energy and Competitiveness“, experts led by Karen Pittel from the Ifo Institute argue that the European Carbon Border Adjustment Mechanism (CBAM) has several deficiencies and should be replaced by a climate club. This club should include the G7 or the G20 and coordinate the regulation of emissions-intensive industries.

CBAM: Experts call for reforming CO2 border tax

Sign up now and continue reading immediately