Addressing the Climate Justice Implication of the EU CBAM

The European Union will implement a Carbon Border Adjustment Mechanism (CBAM), in order to address potential carbon leakage due to ambitious climate policies. However, there are concerns regarding the climate justice implications of this measure. We provide evidence from a recent study that that there is an unequal distribution of CBAM impacts with most countries facing relatively high risks located in Africa and South-Eastern European countries. Therefore, CBAM could shift the burden of fighting climate change to more vulnerable low-income and middle-income countries who are less responsible for climate change.

We suggest ways to mitigative these risks and ensure international cooperation to fight climate change:

Use the revenues generated through the EU CBAM to support decarbonization and strengthen emissions monitoring and verification capacities of low-income and middle-income countries.
Continue and intensify consultations with stakeholders outside the EU and involve such stakeholders in CBAM design.