CBAM Criticisms: a Study of J.Delors thinking Europe

The CBAM introduces a carbon price on selected imported goods  that is equivalent to the carbon price on EU domestically produced goods under the EU’s emissions trading system (ETS). Its scope is expected to expand over time.

This mechanism, as reported by P.Lamy, G.Pons, C.Van Der Ven, C.Azevedo in Turning the EU’s Carbon Border Adjustment Mechanism into a green development tool  ,  “…The CBAM has generated severe criticism from developing countries and LDCs, which was mostly centred around the potential adverse impact on their exports to the EU. Criticism also stems from broader issues related to climate justice and perceptions of green imperialism…”. The authors, in line with the World Bank, say that “…According to the World Bank Exposure Index, countries with the highest level of CBAM exposure are Kazakhstan, Egypt, South Africa, China, Bahrain, Russia, Cameroon and Mozambique…”. Indeed, the process of decarbonisation linked to CBAM requires access to capital investments, which are not as readily available in low-income countries. Moreover, technologies required for decarbonisation are often expensive to access in low and middle-income developing countries due to the geographic concentration of patents for environmentally sound technologies.

The suggestions of the above mentioned study are:

• developing countries and LDCs should be responsible for carrying out CBAM Impact Assessments, the Commission should provide the technical and financial support necessary to assist countries in doing so;
• CBAM Impact Assessments would constitute a good basis for the Commission to fine-tune any technical and financial assistance it provides according to developing partner countries’ levels of exposure and vulnerability to CBAM