The global effects of carbon border adjustment mechanisms

Working paper 28 Apr 2025 Sustainable Growth and Energy

This working paper evaluates EU and UK carbon border adjustment mechanism (CBAM) policies, highlighting their effectiveness in boosting competitiveness, curbing emissions leakage, and encouraging carbon regulation, while addressing concerns about potential disadvantages for lower-income trading partners in sectors like aluminium and steel.

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The global effects of carbon border adjustment mechanisms

Authors

Kimberly Clausing

Jonathan Colmer

Allan Hsiao

Catherine Wolfram

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