EU
The EU's Carbon Border Adjustment Mechanism
Summary Description
Creates a carbon price on the importation of goods from sectors high in GHG emissions.
Species
Jurisdiction
EU
Sub-Jurisdiction
N/A
Type of Act
Legislation
Status
In force
Legal Value
N/A
Date Enacted
N/A
Date Updated
June, 2023
Official Citation
Regulation 2023/956 Establishing a Carbon Border Adjustment Mechanism, 2003 OJ L 130/52–104
Strengths & Weaknesses
Strengths
- Creates a uniform framework to ensure that similar carbon taxation policy is applied both in the EU's internal market and on imported goods, and is linked to the EU Emission Trading System (ETS).
- Tackles the conduct of shifting business and emissions to other countries with lower environmental standards and taxes (i.e., "carbon leakage").
- Encourages more sustainable production process in countries which seek to import goods to the EU, while ensuring WTO compatibility. Includes a monitoring and reporting mechanism (starting in 2023).
Weaknesses
- In its first implementation phase, the EU's Carbon Adjustment Mechanism will not apply to agriculture nor livestock.
- There exist concerns regarding unfair economic impact on lower income and climate vulnerable countries, which depend on the EU's high export capacity as a result of the EU's manufacturing sectors' relocation in developing countries.
Related Laws/Policies
View DatabaseThe Coller Animal Law Forum is part of Jeremy Coller Foundation, a registered charity (No. 1163970) and a company limited by guarantee (No. 9696841) in England and Wales. | Copyright @ 2026