Joint NGO statement on the Carbon Border Adjustment Mechanism

Posted on 16 December 2021

The EU's planned Carbon Border Adjustment Mechanism (CBAM) will put ​a levy on imports of certain goods from regions with less strict climate rules.
With the CBAM, the EU wants to drive higher climate ambition internationally. 

In order to deliver effectively, this instrument will have to support the reduction of EU greenhouse gas emissions while also creating incentives for higher climate ambition from international trading partners.

It must also act as an alternative to the EU Emissions Trading System (ETS) carbon leakage protection measures such as free allowances and indirect cost compensation.

As the worldʼs first internationally applicable border mechanism seeking to put a price on a negative environmental impact, the CBAM will only achieve its aim of higher international climate ambition if it is designed to provide real incentives for industries within and outside Europe to reduce their emissions. It must also demonstrate recognition and understanding of other countriesʼ need and right to develop, and should also recognise that the relative impacts of carbon prices can be much higher for low-income countries. 

Read the joint NGO statement on the CBAM
Billowing smoke from a factory chimney, Copenhagen, Denmark.
© WWF / Fernando Zarur