Are Trade Measures to Tackle the Climate Crisis the End of Differentiated Responsibilities? The Case of the EU Carbon Border Adjustment Mechanism (CBAM)

Venzke, Ingo; Vidigal, Geraldo

doi:10.2139/ssrn.4013767

Cited by 9 publications

(10 citation statements)

References 6 publications

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“…Appendix A research must be regarded as a dynamic wireframe of interde-pendent instructions for a period-bound assessment of the efforts employed by continental regulatory bodies, that ultimately results in a framework set on pragmatic foundations for the concepts proposed by this research effort. (4,6,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,27,28,31,35,36,37,38,40,42,43,44,45,46,49 The documents in italic do not mention the research concept specifically; however, they do contain information or discuss actions and strategies related to it. Some of the studied documents (41,47,48, and 61-65) are hardly linked with the research concepts; however, they are important in creating the framework for their development (e.g., funding programs).…”

Section: Methodsmentioning

confidence: 99%

“…The Carbon Border Adjustment Mechanism levels out the global supply that is openly dealt on European markets, and reduces well-known discriminating practices of outsourcing carbon-intensive production to countries where environmental concern is at a minimum and damaging industrial practices are still the norm [26]. Draconic fiscal measures come into effect, forcing importers to calculate both the environmental impact of production and the supply chain effects on the environment and pay mitigation fees [27].…”

Section: Regulation (Eu)mentioning

confidence: 99%

“…The research supports a theory of continental effort to develop an alternative to conventional fuels, and break the monopoly that hydrocarbons have in industrial dynamics and mobility. Hydrogen is sustained in multiple regulatory initiatives (i.e., 4,6,8,9,10,12,13,14,15,16,17,19,20,21,27,31,32,3,34,35,36,37,38,40,60,68 and 70 in Appendix A) and financing vehicles to evolve as the main competitor to petrol and gases. In our previous study [11], we stated that transportation will include hydrogen-powered vehicles as an alternative to internal combustion and electric engines.…”

Section: The Hydrogen Initiativementioning

confidence: 99%

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The Smart Community: Strategy Layers for a New Sustainable Continental Framework

2023

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The topic investigated in this article is a comparison, contrast, and integration effort of European strategies for sustainable development with the evolving market initiatives that are beginning to fuel the fourth industrial revolution. Several regulatory initiatives from continental bodies come into effect to radically change access to finances for business development, based on sustainability goals, and an analysis of the legislation and trends becomes essential for an effective pivot tactic in the face of adversity, as well as change management policies to pre-emptively adapt and perform. The general research question is “what the strategic tools are best employed to overcome the hurdles laid forth by the drastic changes legally required for a sustainable future?” The research methods include a quantitative analysis of norms, regulations, and legislation, including strategic initiatives circulated in the European Union governmental bodies, integrated with qualitative research of the literature. The study finds and draws synergies between national strategies that have recently been drafted or are currently evolving with sustainability-centric initiatives such as the hydrogen initiative, the nuclear initiative, the natural gas initiative, the renewables initiative, the synthetics, and biomass initiative, the ESG initiative, the digital initiative. The findings are to contribute to the business administration field by providing an appropriate image of the organizational design model in the sustainability era, and a strategy framework to build the optimum long-term vision founded on continental regulatory initiatives that have come into effect.

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Section: Methodsmentioning

confidence: 99%

Section: Regulation (Eu)mentioning

confidence: 99%

Section: The Hydrogen Initiativementioning

confidence: 99%

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The Smart Community: Strategy Layers for a New Sustainable Continental Framework

2023

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“…108 To summarize the literature, by formally limiting the crediting option to carbon pricing in third countries, and exempting specific countries, the EU CBAM is likely to be found incompatible with the non-discriminatory requirements of the GATT, and will therefore have to be justified under GATT Article XX. 109…”

Section: Most Favored Nation and National Treatmentmentioning

confidence: 99%

Accounting for Carbon Pricing in Third Countries Under the EU Carbon Border Adjustment Mechanism

Boute

2024

World Trade Review

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To avoid penalizing exporters that already paid carbon prices, the EU Carbon Border Adjustment Mechanism credits carbon taxes and Emissions Trading Schemes in third countries. By excluding instruments of traditional regulation (e.g. emission standards) and indirect carbon prices (e.g. fuel excise taxes) from this crediting mechanism, the EU is criticized for discriminating against countries that do not follow its climate model, in breach of international trade and climate law. This article seeks to nuance this criticism by arguing that the calculation of actual emissions (instead of default values) under the EU CBAM allows exporters to reflect compliance with foreign emission standards, and thus respects states' right to pursue emission reductions through traditional regulation. However, amendments of the CBAM Regulation are necessary to recognize the positive and negative impact of indirect carbon prices on decarbonization, and the role of carbon-crediting mechanisms in equalizing carbon costs in a more flexible and equitable way.

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“…Damit würde eines der größten handelspolitischen Experimente der EU gestartet. So ist die WTO-Konformität des Konstrukts noch ungeklärt und wird vor allem mit Blick auf das Gebot der Diskriminierungsfreiheit kontrovers diskutiert (Chase und Pinkert, 2021;Venzke und Vidigal, 2022). Auch ist die für die Wirksamkeit des CBAM entscheidende Reaktion der Drittländer völlig unsicher.…”

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Effects of a CO2 Border Adjustment on Downstream Industries

Wolf¹

2022

Wirtschaftsdienst

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This article analyses the cost implications of an EU Carbon Border Adjustment Mechanism (CBAM) for downstream industries in Germany. The restriction to a few basic industries as envisaged in the EU Commission’s proposal is expected to lead to only a slight increase in input costs for downstream manufacturers. This also holds if the CO2 intensities occurring in the countries of origin are used to determine the level of the border adjustment. One reason for this, apart from the restriction to a few basic materials and to direct emissions, is the small share of imports from third countries. To strengthen the steering effect of a CBAM, the inclusion of emissions at upstream production levels therefore seems manageable, to the extent that they apply to intermediate inputs that are also subject to the EU-ETS. In the long term, a CBAM should not be thought of as an end in itself, but as one of several steps towards an international climate club.

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Are Trade Measures to Tackle the Climate Crisis the End of Differentiated Responsibilities? The Case of the EU Carbon Border Adjustment Mechanism (CBAM)

Cited by 9 publications

References 6 publications

The Smart Community: Strategy Layers for a New Sustainable Continental Framework

The Smart Community: Strategy Layers for a New Sustainable Continental Framework

Accounting for Carbon Pricing in Third Countries Under the EU Carbon Border Adjustment Mechanism

Effects of a CO2 Border Adjustment on Downstream Industries

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