The EU’s plan to tax the carbon content of imports may protect Europe’s materials industry from competitors in other countries with less stringent and costly greenhouse-gas regulations, primarily China, but fail to stem so-called carbon leakage. Download the report The European Commission is preparing a legislative proposal on a carbon border adjustment mechanism (CBAM) as a corollary to the EU’s Green Deal which will impose extra sustainability-linked costs on domestic industry. But the EC also wants to avoid the problem of firms simply relocating production to more lenient foreign jurisdictions…
Read MoreEU carbon pricing: is a border levy a new sustainability standard or a catalyst for carbon leakage?
