A storm in a teacup: impacts and geopolitical risks of the European Carbon Border Adjustment Mechanism
Report | A storm in a teacup Impacts and geopolitical risks of the European Carbon Border Adjustment Mechanism. Sandbag and E3G were commissioned by Energy Foundation China to analyse the impact of the CBAM proposed by the European Commission in its Fit For 55...
New study shows limited trade impacts of European Carbon Border Adjustment Mechanism
New study shows limited trade impacts of European Carbon Border Adjustment Mechanism The impact of the likely Carbon Border Adjustment Mechanism (CBAM) on European importers will be minor, according to a new report by Sandbag and E3G. The CBAM only covers 3.2 percent...
ETS reform: under the hype, a sense of déjà-vu
EU ETS reform: under the hype, a sense of déjà-vu On 14 July a long-expected reform proposal of Europe’s carbon market was published by the European Commission. Far from addressing the market’s main issues, it barely adds a few patches and increases the risk of...
A Storm in a Teacup: preliminary findings on the CBAM proposal
Sandbag’s analysis of the European Commission’s leaked proposal for a CBAM highlights its limited trade scope but significant climate policy implications. Although the covered goods represent a small fraction of EU imports (just 0.8% from China) the sectors involved receive nearly half of all free EU ETS allowances. The CBAM aims to replace these with a carbon pricing mechanism on imports, particularly affecting steel and aluminium. While importers may face increased costs, much of this is expected to be offset through higher consumer prices.