INFO REPORT ON THE EUROPEAN UNION’S CARBON BORDER ADJUSTMENT MECHANISM

Climate change is becoming a defining problem of the modern world and especially of Europe. The climate crisis is escalating as sea levels rise, the planet warms, and emissions continue to increase. The compounding of recent heat waves, artificial intelligence growth, political instability, and more have pushed the European Union to implement a Carbon Border Adjustment Mechanism. This mechanism, referred to as the CBAM, imposes a fee on EU importers of foreign, carbon-intensive goods. The CBAM has many potential geopolitical, economic, social, and climate impacts. This brief will establish the problems of climate change and the broader context for which this CBAM has come into place in. Then, it will explain why the EU is a particular key figure in climate action. Finally, it will explain the core features of the CBAM, its current efficacy despite recent implementation, the benefits and disadvantages, before providing actionable recommendations.