CBAM will bring only minimal emissions reduction, ADB warns
ADB found that CBAM will reduce global emissions by just 0.2% more than a regular emissions trading scheme.
The Asian Development Bank (ADB) has published a report asserting that the EU’s Carbon Border Adjustment Mechanism (CBAM) will not bring substantial emissions gains without carbon pricing initiatives elsewhere.
The EU’s flagship carbon tariff, which aims to avoid ‘carbon leakage’, ie. manufacturers moving production to other countries to avoid paying for emissions under EU law, entered its transition phase last October: since then, importers of electricity, iron and steel, cement, aluminium, fertilisers and hydrogen have been required to submit a quarterly report tracking these goods, their direct and indirect emissions and the corresponding carbon price due in the production country.
