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Author: Publisher: ISBN: 9789290849490 Category : Languages : en Pages :
Book Description
In the context of raising its climate ambition, Europe is thinking of introducing a Carbon Border Adjustment Mechanism (CBAM) on imports. This would be to forestall carbon leakage, whereby European production relocates outside Europe, and is intended to encourage other countries to follow Europe's lead and raise climate ambition. How this CBAM would work is as yet unclear, although there is a clear wish for the measure to be compatible with World Trade Organisation (WTO) rules. The purpose of CBAM is not to help, nor protect, European industry beyond preventing carbon leakage. In this Policy Brief, the authors make seven clear and pragmatic recommendations on the implementation of this measure if Europe decides to go ahead with it. Misunderstandings are already arising, partly as a result of the declared use of revenues raised. As so often in policymaking, there are trade-offs to be made, and one of the primary recommendations is to engage early with international partners and explore the possibility of acting in unison with others who share the goal of raising climate ambition and are also concerned about potential carbon leakage. A gradual start for the CBAM is also recommended in order to capture the benefits of learning-by-doing.
Author: Publisher: ISBN: 9789290849490 Category : Languages : en Pages :
Book Description
In the context of raising its climate ambition, Europe is thinking of introducing a Carbon Border Adjustment Mechanism (CBAM) on imports. This would be to forestall carbon leakage, whereby European production relocates outside Europe, and is intended to encourage other countries to follow Europe's lead and raise climate ambition. How this CBAM would work is as yet unclear, although there is a clear wish for the measure to be compatible with World Trade Organisation (WTO) rules. The purpose of CBAM is not to help, nor protect, European industry beyond preventing carbon leakage. In this Policy Brief, the authors make seven clear and pragmatic recommendations on the implementation of this measure if Europe decides to go ahead with it. Misunderstandings are already arising, partly as a result of the declared use of revenues raised. As so often in policymaking, there are trade-offs to be made, and one of the primary recommendations is to engage early with international partners and explore the possibility of acting in unison with others who share the goal of raising climate ambition and are also concerned about potential carbon leakage. A gradual start for the CBAM is also recommended in order to capture the benefits of learning-by-doing.
Author: Clara Brandi Publisher: ISBN: Category : Languages : en Pages :
Book Description
The European Commission unveiled the Carbon Border Adjustment Mechanism (CBAM) in July 2021 as part of its "Fit for 55" climate-policy package. The European Commission had announced this trade-policy instrument under the Green Deal in 2019 as a means of implementing more ambitious climate-policy goals without energy-intensive sectors transferring their emissions abroad (carbon leakage). The CBAM proposal envisages imposing a levy on imports in certain energy-intensive European sectors that is proportional to the carbon content of the goods concerned. The proposal complements the EU's existing Emissions Trading System by requiring importers of goods purchased from especially energy-intensive sectors (steel, cement, electricity, fertiliser and aluminium) abroad to purchase carbon certificates based on emissions data from abroad. CBAM is primarily designed to promote an ambitious climate policy for the EU. However, the EU's current proposal creates the impression that it is mainly about improving domestic competitiveness at the expense of climate-policy effectiveness and development prospects.The draft legislation must now be fleshed out in detail by the EU member states and the European Parliament. In addition to addressing climate-policy effectiveness and compatibility with WTO legislation, account must also be taken of the impact on European trading partners, and, in particular, poor developing countries. Many developing countries are expected to face additional export costs as a result of the CBAM. The EU should carefully evaluate the associated disadvantages for developing countries and work towards achieving a development-friendly design of the mechanism. Corresponding improvements should be made to the CBAM in the EU's legislative process going forward: The EU must ensure that the border adjustments do not have a detrimental impact on poor countries. Least developed countries (LDCs) should be exempted from the CBAM. The EU should provide targeted support to the developing countries affected by the mechanism, for instance, by building their capacity for implementing the CBAM and for reducing carbon emissions in the sectors concerned. The EU should assist low- and middle-income partner countries with the decarbonisation of their manufacturing industries. The EU should also recycle revenue from the CBAM by deploying it primarily for climate-policy purposes abroad. The affected countries should be involved to a greater extent in future through consultations and diplomatic dialogue in the process for further developing the mechanism.
Author: Ian W.H. Parry Publisher: International Monetary Fund ISBN: 1513594540 Category : Business & Economics Languages : en Pages : 22
Book Description
This Climate Note discusses the rationale, design, and impacts of border carbon adjustments (BCAs), charges on embodied carbon in imports potentially matched by rebates for embodied carbon in exports. Large disparities in carbon pricing between countries is raising concerns about competitiveness and emissions leakage, and BCAs are a potentially effective instrument for addressing such concerns. Design details are critical, however. For example, limiting coverage of the BCA to energy-intensive, trade-exposed industries facilitates administration, and initially benchmarking BCAs on domestic emissions intensities would help ease the transition for emissions-intensive trading partners. It is also important to consider how to apply BCAs across countries with different approaches to emissions mitigation. BCAs are challenging because they pose legal risks and may be at odds with the differentiated responsibilities of developing countries. Furthermore, BCAs provide only modest incentives for other large emitting countries to scale carbon pricing—an international carbon price floor would be far more effective in this regard.
Author: Cato Institute Publisher: Cato Institute ISBN: 1933995912 Category : Law Languages : en Pages : 698
Book Description
Offers policy recommendations from Cato Institute experts on every major policy issue. Providing both in-depth analysis and concrete recommendations, the Handbook is an invaluable resource for policymakers and anyone else interested in securing liberty through limited government.
Author: Felicity Deane Publisher: Edward Elgar Publishing ISBN: 1783474424 Category : Business & Economics Languages : en Pages : 235
Book Description
Emissions Trading and WTO Law examines the global trade issues that arise as a result of the introduction of emissions trading frameworks. The book focusses specifically on the rules of the WTO, as a tool to demonstrate where the boundaries exist for a
Author: Georg Zachmann Publisher: ISBN: Category : Languages : en Pages :
Book Description
The European Green Deal has set a target of reducing European Union carbon emissions by about 40 percent over the next ten years. Reaching this target is likely to involve a significant increase in carbon prices. Theoretically, higher carbon prices can lead to carbon leakage, or the relocation of industrial activity and its accompanying emissions out of economies with high carbon prices and into economies with low carbon prices. To address this perceived threat, the European Commission will consider the inclusion of a carbon border adjustment mechanism within the European Green Deal. This will apply a charge on goods imported into the EU, based on the emissions emitted during their production. The European Commission should not make the implementation of a carbon border adjustment mechanism into a must-have element of its climate policy. There is little in the way of strong empirical evidence that would justify a carbon-adjustment measure. Assessments of current carbon pricing schemes typically find no leakage, while ex-ante modelling tends to find limited leakage, with results highly sensitive to underlying assumptions. Energy price differentials - a proxy for carbon prices do not necessarily result in a relocation of energy-intensive production. Furthermore, significant logistical, legal and political challenges will arise during the design of a carbon border mechanism. Choices would have to be made between more efficient but highly complex and politically risky approaches, and mainly symbolic but more easily implementable solutions. To simplify the design of a carbon border mechanism whilst maximising its benefits, the Commission has proposed focusing only on carbon-intensive and trade-exposed sectors. But it will be difficult to draw a strict line between covered and non-covered sectors. Trade deviation will potentially lead to lobbying and the temptation for "cascading protectionism", with tariffs extended to industries further along value chains. A strategy of tying future climate policy to the implementation of a border adjustment mechanism might therefore hinder rather than help EU climate policy. The EU should instead focus upon the implementation of measures to trigger the development of a competitive low-carbon industry in Europe.
Author: Manfred Hafner Publisher: Springer Nature ISBN: 3030390667 Category : Political Science Languages : en Pages : 398
Book Description
The world is currently undergoing an historic energy transition, driven by increasingly stringent decarbonisation policies and rapid advances in low-carbon technologies. The large-scale shift to low-carbon energy is disrupting the global energy system, impacting whole economies, and changing the political dynamics within and between countries. This open access book, written by leading energy scholars, examines the economic and geopolitical implications of the global energy transition, from both regional and thematic perspectives. The first part of the book addresses the geopolitical implications in the world’s main energy-producing and energy-consuming regions, while the second presents in-depth case studies on selected issues, ranging from the geopolitics of renewable energy, to the mineral foundations of the global energy transformation, to governance issues in connection with the changing global energy order. Given its scope, the book will appeal to researchers in energy, climate change and international relations, as well as to professionals working in the energy industry.
Author: Hans-Werner Sinn Publisher: MIT Press ISBN: 0262300583 Category : Business & Economics Languages : en Pages : 287
Book Description
A leading economist develops a supply-side approach to fighting climate change that encourages resource owners to leave more of their fossil carbon underground. The Earth is getting warmer. Yet, as Hans-Werner Sinn points out in this provocative book, the dominant policy approach—which aims to curb consumption of fossil energy—has been ineffective. Despite policy makers' efforts to promote alternative energy, impose emission controls on cars, and enforce tough energy-efficiency standards for buildings, the relentlessly rising curve of CO2 output does not show the slightest downward turn. Some proposed solutions are downright harmful: cultivating crops to make biofuels not only contributes to global warming but also uses resources that should be devoted to feeding the world's hungry. In The Green Paradox, Sinn proposes a new, more pragmatic approach based not on regulating the demand for fossil fuels but on controlling the supply. The owners of carbon resources, Sinn explains, are pre-empting future regulation by accelerating the production of fossil energy while they can. This is the “Green Paradox”: expected future reduction in carbon consumption has the effect of accelerating climate change. Sinn suggests a supply-side solution: inducing the owners of carbon resources to leave more of their wealth underground. He proposes the swift introduction of a “Super-Kyoto” system—gathering all consumer countries into a cartel by means of a worldwide, coordinated cap-and-trade system supported by the levying of source taxes on capital income—to spoil the resource owners' appetite for financial assets. Only if we can shift our focus from local demand to worldwide supply policies for reducing carbon emissions, Sinn argues, will we have a chance of staving off climate disaster.
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Author: 
Author: Clara Brandi
Author: Ian W.H. Parry
Author: Cato Institute
Author: Felicity Deane
Author: Georg Zachmann
Author: Manfred Hafner
Author: Michael Mehling
Author: Hans-Werner Sinn
Author: Alise Karcevska