Impact Assessment of CBAM in 30 Countries

The Project at A Glance

Carbon border adjustment mechanisms (CBAMs) are a form of applied tariff on imports whereby importers must bear regulatory costs equivalent to those incurred by domestic producers concerning carbon emissions. The implementation of the CBAM by the EU might potentially adversely affect the exports of products related to high carbon emissions to the EU for the LDCs and SIDS.

International Economics is assisting the European Commission to assess the ex-ante effects of the CBAM in 30 most potentially impacted countries.

What We Found

International Economics will build on inception impact assessment of the CBAM which was finalised in April 2020 by identifying the main impacts of the CBAM on LDCs and inform the European Commission’s policy responses, such as how LDC-relevant aspect should be considered in CBAM design or what supporting measures would be relevant.

Our Strategy and Impact

The team will conduct an in-depth critical review of past studies on CBAM to propose a methodology and indicators to quantify the impact of CBAM in LDCs and SIDs. Individual studies for LDCs and SIDs, which export aluminium, iron/steel, cement or chemical fertilisers and which are exposed to CBAM, will be developed. These studies will be enhanced through engagement with national stakeholders and leadership of key business associations and firms from the tagged sectors.

Our Core Solutions

The cross-cutting nature of trade is such that it requires a comprehensive, integrated, and inclusive framework. While well-designed trade policies are vital to delivering long-term benefits for economies, so is the need for effective implementation.

At International Economics Consulting Ltd., we support the public and private sectors in navigating the policy and negotiation landscape regarding international trade. This includes establishing robust monitoring and evaluation framework through sophisticated real-time dashboards and reporting systems to ensure the best outcomes. We provide advocacy services to empower delegations and negotiators to participate effectively in trade negotiations and deliberations and advocate for their countries’ interests and positions.

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