An Incentive or a Penalty? A Carbon Border Adjustment Mechanism Could Hit Some Trade Partners Hard
The European Green Deal plays a crucial role in the EU’s efforts to achieve its ambitious climate policy goals. By implementing a carbon border adjustment mechanism that will impose levies on imports, the EU hopes to prevent companies from relocating their activities to countries with less ambitious climate policies. Which countries are exposed to greater economic risks as a result? What makes them particularly vulnerable? And how can the EU help them to protect the climate? IASS researchers have tackled these issues in a new study.