CBAM represents a pivotal shift in global climate and trade policy, effectively designed to extend the bloc’s carbon pricing regime to selected imports. The mechanism is well-intended in its aims to prevent “carbon leakage” as Europe tightens its emissions rules, since CBAM will require foreign producers of carbon-intensive goods – from steel and cement to fertilizers and aluminum – to purchase certificates reflecting the carbon emissions embedded in their products. Yet CBAM represents the wrong approach that will lead to negative consequences for the European economy, businesses and consumers as well as upset global trading partners.
https://www.neglobal.eu/europe-risks-doubling-down-on-its-big-green-mistake/