Study on the possibility to set up a carbon border adjustment mechanism on selected sectors

The European Green Deal includes the goal of enshrining the long-term objective of climate neutrality by 2050 in legislation and increasing the EU’s climate by 2030. In this context, the Green Deal emphasized that “should differences in levels of ambition worldwide persist, as the EU increases its climate ambition, the Commission will propose a carbon border adjustment mechanism, for selected sectors, to reduce the risk of carbon leakage”. The project assesses the design options, implications and scope of carbon border adjustment mechanisms (CBAM) or alternative measures such as a carbon border adjustment for imports, a CBA on imports and exports, an excise with border adjustment in combination with continued free allocation, or a carbon added tax.