The EU Proposal for a Carbon Border Adjustment Mechanism (CBAM): An Analysis under WTO and Climate Change Law

Espa, Ilaria; Francois, Joseph; van Asselt, Harro (November 2022). The EU Proposal for a Carbon Border Adjustment Mechanism (CBAM): An Analysis under WTO and Climate Change Law (Submitted) (WTI Working Paper Series 06/2022). Bern: World Trade Institute

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This paper scrutinizes the European Union’s proposal for a carbon border adjustment mechanism (CBAM) under the rules of the World Trade Organization (WTO) and climate change law. It first examines the logic behind the CBAM as a border carbon adjustment measure, having due regard to the complex interplay between its stated carbon leakage rationale and its fair competition mechanics. It then dissects the main anticipated features of the CBAM and discusses how they may fare under both WTO law and climate change law. Finally, it identifies the most critical proposed design elements from a legal perspective and discusses possible alternatives or variations that could better align the CBAM with its climate change purpose.

Item Type:

Working Paper

Division/Institute:

02 Faculty of Law > Department of Economic Law > World Trade Institute
10 Strategic Research Centers > World Trade Institute

UniBE Contributor:

Espa, Ilaria, Francois, Joseph

Subjects:

300 Social sciences, sociology & anthropology > 320 Political science
300 Social sciences, sociology & anthropology > 330 Economics
300 Social sciences, sociology & anthropology > 340 Law
300 Social sciences, sociology & anthropology > 380 Commerce, communications & transportation

Series:

WTI Working Paper Series

Publisher:

World Trade Institute

Language:

English

Submitter:

Mario Sgarrella

Date Deposited:

09 Dec 2022 17:43

Last Modified:

12 Jan 2023 17:50

JEL Classification:

F18, Q56

BORIS DOI:

10.48350/174432

URI:

https://boris.unibe.ch/id/eprint/174432

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