The EU’s Carbon Tax on Imports (CBAM) Dilemma: International Law and Supporting LDCs

As an integral part of the European Green Deal, the EU’s Carbon Border Adjustment Mechanism, or CBAM, is in its essence a carbon tax on imported products coming into the EU. The policy aims to prevent so-called ‘carbon leakage’: a circumstance wherein strict climate policies in one economy (like the EU’s) incentivises polluting businesses to relocate to other countries with less ambitious environmental regulations. By imposing a carbon tax on foreign businesses whose goods are sold in the European market, CBAM intends to encourage cleaner industrial practices in non-EU countries. In doing so, CBAM also sets a level playing field for European businesses by preventing competing foreign firms from circumventing the EU’s domestic equivalent carbon tax, the Emissions Trading System (ETS).

EU 2022 Strategic Foresight Report: a change of mind?

A little over a year ago, the European commission presented its 2021 Strategic Foresight Report. Since then, Putin has caused panic by cutting of Europe's gas supplies, Elon Musk has taken over Twitter and promised to get rid of censorship, and ECB interest rates have increased from -0,5% to 1,5%. Has this persuaded the EU to change course? Read on to find out.